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   at Glass.Mapper.Sc.GlassHtml.MakeEditable[T](Expression`1 field, Expression`1 standardOutput, T model, Object parameters, Context context, Database database, TextWriter writer) in c:\TeamCity\buildAgent\work\8567e2ba106d3992\Source\Glass.Mapper.Sc\GlassHtml.cs:line 540

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   at Glass.Mapper.Sc.GlassHtml.MakeEditable[T](Expression`1 field, Expression`1 standardOutput, T model, Object parameters, Context context, Database database, TextWriter writer) in c:\TeamCity\buildAgent\work\8567e2ba106d3992\Source\Glass.Mapper.Sc\GlassHtml.cs:line 540

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   at Glass.Mapper.Sc.GlassHtml.MakeEditable[T](Expression`1 field, Expression`1 standardOutput, T model, Object parameters, Context context, Database database, TextWriter writer) in c:\TeamCity\buildAgent\work\8567e2ba106d3992\Source\Glass.Mapper.Sc\GlassHtml.cs:line 540

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   at Glass.Mapper.Sc.GlassHtml.MakeEditable[T](Expression`1 field, Expression`1 standardOutput, T model, Object parameters, Context context, Database database, TextWriter writer) in c:\TeamCity\buildAgent\work\8567e2ba106d3992\Source\Glass.Mapper.Sc\GlassHtml.cs:line 540

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   at Glass.Mapper.Sc.GlassHtml.MakeEditable[T](Expression`1 field, Expression`1 standardOutput, T model, Object parameters, Context context, Database database, TextWriter writer) in c:\TeamCity\buildAgent\work\8567e2ba106d3992\Source\Glass.Mapper.Sc\GlassHtml.cs:line 540

Chief Financial Officer's Introduction

Peter Beaven
Chief Financial Officer

'We are proud to be a leader in transparency.'

I am pleased to introduce BHP Billiton’s Economic contribution and payments to governments Report for 2016.

This Report discloses the payments we have made during FY2016 on a country-by-country and project-by-project basis. BHP Billiton is a leader in transparency and this Report includes additional information disclosed on a voluntary basis.

BHP Billiton is proud of the contribution that we make to our host countries. In FY2016, our total economic contribution was US$26.7 billion which included payments to suppliers, wages and employee benefits, dividends, taxes and royalties. This includes our voluntary contributions to our host communities. In FY2016, we invested US$179 million in communities.

In FY2016, we paid US$3.7 billion globally in taxes, royalties and other payments. Our global adjusted effective tax rate was 35.8 per cent. Once royalties are included, this rate increases to 58.6 per cent.

Our payments of taxes and royalties have decreased in FY2016 compared with prior years. This is reflective of lower profits due to lower prices. Our global adjusted effective tax rate has remained stable throughout the cycle (averaging 31.9 per cent over the past decade). In Australia where we pay the majority of our taxes and royalties, we continue to be one of the largest taxpayers. During the last decade, we paid US$85 billion globally in taxes, royalties and other payments and US$58 billion (A$65 billion) approximately in taxes, royalties and other payments in Australia.

The cyclical nature of the resources industry highlights the need to have internationally competitive tax systems for countries whose economies are able to rely on the resources industry to drive national wealth. This is critical to ensure that returns from growth and development opportunities are sufficient to attract the required global investment capital into that country. This is the case for all industries, especially for those such as the resources industry where there is global competition for limited capital.

BHP Billiton welcomes the public interest in important topics such as the integrity of tax systems globally and the contribution, including through payment of taxes, that multinational companies make to the countries in which they operate. We support the principle that a country’s taxing rights should be aligned with the value created and the activities undertaken in that jurisdiction. We also support the introduction of public disclosure requirements relating to beneficial ownership. These are issues that require leadership and a changed approach. We recognise this and seek to be an industry and global leader in our level of public disclosure to foster an informed public policy debate.

We look forward to discussing this Report with our stakeholders around the world and continuing our leadership role in transparency.

Peter Beaven
Chief Financial Officer

 

Economic contribution and payments to governments Report 2016 (PDF 2.5 MB)

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