Is the AFL Coming After BHP?, page-16

overall it illustrates the basics, they fail to mention debt loading only goes so far due to thin capitalisation rules which essentially cap the level of debt you can put to equity. Otherwise every man and his dog would 100% internally debt fund any acquisition in Australia/business due to high tax rates and offshore the profit to a low tax country.... Also Chevron did get done on artificially high interest rates. Income isn’t an entirely reliable measure for mining due to high CAPEX, thus depreciation deductions which is fair to payback capital. I worked in tax and now in finance. The author is a bit of a leftie idealist focusing on fossils fuels and focusing his hate on them not explaining the nuances of mining capex vs a disgusting tech company. low margin service/manufacturing and tech is wayyyyyy worse for cheating tax.

this is part of the reason a lot of these organisations are so left wing in the media and political correct. It’s a ‘look over here’ not at us shifting profits offshore paying 0 corporate tax.

FYI Rio and BHPs Singapore hub is utterly small fry compared to total tax paid, I don’t agree with it, and looks like the ATO doesn’t wither. However overall Bhp and Rio are basically model citizens for tax.