Reference Number: Quirk Level 10, 111 Pacific Highway North Sydney NSW 2060 30 October 2015 Locked Bag 917 North Sydney NSW 2059 Telephone: +61 2 9464 1000 Facsimile: +61 2 9464 1111 Dr Kathleen Dermody, Committee Secretary Senate Economics References Committee PO Box 6100 Parliament House Canberra ACT 2600 PDF by email: to
[email protected] Dear Dr Dermody Inquiry into corporate tax avoidance and minimisation This company' s name was changed from "Transfield Services Limited" to "Broadspectrum Limited" by the shareholders at our AGM on Wednesday 28 October 2015. Our response to your request for a submission to the Senate Inquiry into Corporate Tax Avoidance and Minimisation is attached. (For convenience, below we refer to ourselves as "Transfield".) The content of the submission speaks for itself. At the same time, we highlight the following points for the committee: • Transfield takes its obligations as a taxpayer and a responsible corporate citizen very seriously. Our objective in our tax affairs and dealings revolves around the principles of transparency, simplicity and doing what is right. • Transfield's current effective tax rate is 27 .5%. This is based on the Group's total profit and reported income tax expense for FY15. • While effective tax rates can move materially from time to time, we also observe that over the last 12 years the company has paid an average of 36% of Group profits in actual cash payments to the ATO . This payment of corporate income tax in cash is a useful statistic for the information of the committee. • Transfield stresses that it does not employ any tax structuring for the purposes of revenue or profit shifting that would serve to reduce tax payable in Australia.