BHP Billiton settles long-standing Oz tax dispute
SIRIUS Real Estate, the JSE-listed German operator of branded business parks providing conventional space and flexible workspace, completed the disposal of all non-core assets for total proceeds of €19.3 million (R307.4m) in the six months to September, giving it cash for acquisitions.
The group said it had make good progress on investing funds from a March 18 equity raise. It had acquired two assets in the period for €29.8m, followed shortly after the period end by another acquisition for €9.6m and notarisation of an asset for €25.7m.
It said that it had significant resources to acquire further assets in the second half of the financial year to drive shareholder value.
Sirius’s profit before tax in the period grew 43 percent year-on-year to €78.2m, compared with €54.7m at the same time last year, while funds from operations grew by 25.9 percent to €23.3m compared with €18.5m in the previous period.
It increased the interim dividend 4.5 percent to 1.63 cents per share, higher than the 1.56c of 2017. Chief executive Andrew Coombs said in the first half of the year the group achieved a significant milestone, exceeding the €1 billion mark for assets owned.
Sirius realised a 43 percent yearon-year increase in profit before tax underpinned by a €69.3m valuation uplift, new lettings of more than 83 000m² and €6.6m of annualised rent roll signed in the period and is able to report a 2.6 percent like-for-like rental growth despite the impact from three expected large move-outs.
In October, Sirius said the half-year had been another good trading period, underpinned by strong occupier demand for conventional and flexible space and positive letting activity, which together had resulted in an encouraging increase in organic rental growth despite some large expected move outs at the start of the year.
Sirius shares closed 1.67 percent higher at R10.98 on the JSE yesterday. dineo.faku@inl.co.za GLOBAL resources giant BHP Billiton yesterday agreed to settle a long-standing transfer dispute with the Australian tax authority over commodity payments made to its Singapore marketing business.
The Australian Tax Office (ATO) had accused the world’s biggest mining company of allegedly shifting profits from its iron ore sales to Singapore, its hub marketing between 2003 and 2018.
BHP Billiton yesterday said that it would pay A$529 million (R5.4 billion) in additional taxes for the income years 2003 to 2018 “with no admission of tax avoidance by BHP”.
The JSE-listed company also said it had already paid A$328m of the amount, following receipt of amended tax assessments and in accordance with the ATO’s normal practice.
Chief financial officer Peter Beaven said the payment was in addition to the more than A$75bn in Australian taxes and royalties that BHP had already paid over that same period.
“The settlement provides clarity for BHP and the ATO in relation to how taxes will be assessed and paid on the sale of Australian commodities,” Beaver said.
“That certainly is good for business and for Australia.”
In addition to the payment, the company would increase its ownership of BHP Billiton Marketing next year – which is the main company conducting BHP’s Singapore marketing business – to 100 percent from 58 percent.
The issue under dispute with the marketing hub was reportedly the margin on mark-ups for commodities sold to Singapore operations, where the tax rate had been legally reduced to zero or near zero on incentives from Singapore’s government.
The change in ownership was expected to result in all profits made in Singapore fully subject to Australian tax.
“The change in ownership will provide certainty for BHP and the ATO regarding the Australian taxation treatment of BHP’s Singapore marketing business for future years,” the company said.
BHP Billiton rose 0.4 percent on the JSE yesterday to close at R290.91.