Packer pans tax dodgers
We wear the crown among top 50 companies, says gaming chief
GAMING magnate James Packer says Crown Resorts pays its way in full when it comes to tax, and he has taken a rare shot at other companies for paying too little.
Mr Packer said his empire sets an example by paying more tax as a percentage of profit than any other company in the nation’s top 50.
Speaking at Crown’s annual meeting in Melbourne yesterday, Mr Packer said the group’s net profit margin of 10 per cent and pre-tax margin in the low teens were below those of other monopoly organisations.
“Sydney Airport and Transurban don’t have a pre-tax profit margin in the low teens,” he said.
“We are a role-model Australian company.
“I think people should be asking why Sydney Airport and Transurban aren’t paying more tax.”
Both companies called out say they are paying the appropriate amount.
Mr Packer, who has stepped down as chairman this year after a decade in the role, said tax avoidance by international companies operating in Australia was becoming an increasing serious issue.
“Companies that pay tax matter,” he said. “Companies that employ people matter.”
Mr Packer said Crown took its social obligations seriously.
“I’m not sure proud is the right word when it comes to paying more tax as a percentage (than other top 50 companies), but it’s a fact, and facts are stubborn things,” he said.
Mr Packer will become an executive director in the company after handing over the chairmanship reins to former investment banker Robert Rankin.
Despite speculation Mr Packer could command a salary of $10 million, the group said no recommendation had been put to the Crown board.
Mr Packer assured shareholders he would remain hands-on at the company.
He said Crown meant more to him than anything but his family.
“No one should be under any illusion that I’m not going to be very focused and active in this company,” he said.
Shareholders also heard that management would focus more on net profit after tax as the “key number to drive for”, rather than pre-tax earnings.
Mr Rankin said he was “very positive about the future of this company’’.
Crown chief Rowen Craigie said results at the Melbourne resort this year had been “pleasing”, with pre-tax earnings up 17.8 per cent.
The Perth resort’s earnings were more subdued, up 5.3 per cent, while China’s economic slowdown continued to impact the group’s Macau venture.
Mr Craigie said the success of Crown Melbourne reflected the $1.8 billion investment made over the past 10 years in upgrades and new attractions.
Crown Resorts shares closed 3.5 per cent higher at $11.99.