BHP Billiton Wins Tax Exemptions for Demerger

1257 Words5 Pages
Article Stevens, M., Chessell, J. 2014, ‘BHP Billiton wins tax exemptions for demerger’, The Sydney Morning Herald, 5 April, viewed 28 April 2014, < > Summary Stevens and Chessell (2014) discuss the concerns over Australian government’s approval of the tax exemptions for the BHP Billiton for a $20 billion demerger of non-core assets. Considering the positive market reaction towards BHP’s plan for the underlying dividend to shareholders and potential benefit for industry, the Australian Taxation Office approved the exemption application. BHP is considered to improve corporate sustainability and maintain the positive momentum under current advantageous government policies and industry conditions. Application The regulatory constraints on businesses from government have been subdued recent years. Fulfilling the function of the state, Prime Minister Tony Abbott’s government proposed a new climate policy that the government will put off the existing levy on emitters and set up fund with as much as $2.6 billion to subsidize the mining enterprises in cutting green-house gas emissions (Anderson, Scott 2014). The subsidy released the financial burden of carbon tax which cost BHP $77.5 million in 2013 (Financial Review 2014) as an enabler in mining industry (Conrad 1993). In addition, the federal government’s effort to place infrastructure improvements at the centre of growth agenda

More about BHP Billiton Wins Tax Exemptions for Demerger

Open Document