BHP Billiton yesterday released a new Economic contribution and payments to governments Report as part of its long-standing commitment to transparency and voluntary disclosure.
Published in conjunction with with the Company’s Annual Reporting suite, the new Report discloses payments made to governments during the 2015 financial year on a country-by-country and project-by-project basis.
Introducing the Report, BHP Billiton CFO Peter Beaven said the Company had increased its disclosure ahead of regulatory requirements.
“The additional information we are providing builds on the annual tax and royalty payments information we have provided in our Sustainability Report for the last 15 years,” he said.
“We create value for our communities and shareholders through the development of natural resources – and our tax and royalty payments are an essential part of this contribution.”
For the 2015 financial year, BHP Billiton paid US$7.3 billion globally in taxes, royalties and other payments to governments.
In the period, BHP Billiton’s global adjusted effective tax rate was 31.8 per cent, compared to the OECD average corporate income tax rate of 25 per cent, and the Company’s effective income tax and royalties paid rate was in excess of 45 per cent.
“Tax and royalty payments are just one way in which we make a difference,” Mr Beaven said.
“Last financial year our total economic contribution was US$35.7 billion which included taxes and royalties, voluntary contributions to host communities, payments to suppliers, wages and employee benefits – as well as dividends to more than six hundred thousand shareholders.”
Mr Beaven reinforced BHP Billiton’s commitment to disclosure and transparency.
“We began to voluntarily disclose our tax and royalty payments in 2000 and since then we have progressively increased the detail in these disclosures,” he said.
BHP Billiton is committed to the highest standards of corporate governance and we seek to encourage reforms that enhance disclosure and transparency around the world.
This includes support for the creation of a globally-consistent mandatory disclosure framework with formal equivalency agreements between jurisdictions.
BHP Billiton was also a founding supporter of the Extractive Industries Transparency Institute (EITI) in 2002 and in the 2014 assesment by Transparency International, BHP Billiton ranks as the most transparent mining company and fourth overall globally.