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Court to hear Adani to pay no tax in Australia – Carmichael mine approval must be overturned

Media Release
Larissa Waters 1 May 2015

With expert evidence tabled in the Land Court in Brisbane being heard today that Adani will likely pay no corporate tax in Australia, the Australian Greens are calling for the Carmichael coal mine approval to be overturned.

"It's clear from the evidence that one of two things will happen, both of which would mean Adani pays no corporate tax in Australia," Senator Larissa Waters, Australian Greens mining spokesperson, said.

"The most likely outcome is that the mine will not make a profit because the coal price is so low - it's much lower than what Adani has factored into its forecasts.

"If somehow the mine turns a profit, Adani could use its complex corporate structure to siphon that money into offshore tax havens to get away with paying no tax here.

"Adani has parent companies in tax havens like Singapore, Mauritius and the Cayman Islands, and ordinary Australians are entitled to ask: ‘Why have them except to avoid paying tax?'

"The expert evidence tabled and being heard today from the Institute of Energy Economics and Financial Analysis revealed that this is exactly what Adani has done with other projects in the past.

"In fact, by making excessive interest repayments to overseas entities, Adani has paid only $1.2 million in tax in Australia over 4 years despite the port being operational and making a pre-interest profit over the same period.

"In an age of climate change, with renewable alternatives waiting, it's just crazy to approve one of the world's largest coal mines to turn the Great Barrier Reef into a coal ship highway.

"On top of Carmichael's ability to cook the Reef and the planet, Adani will likely pay no tax in Australia, and this comes after its jobs and royalties projections have been shown in court to be completely overblown.

"When Minister Hunt approved the Carmichael mine under our national environment laws he relied heavily on the claimed temporary economic benefits, which were clearly exaggerated.

"The Abbott Government needs to urgently overturn its approval which is based on hollow promises which will not help Queensland," Senator Waters said.

Adani Mining Pty Ltd v Land Services of Coast and Country Inc. is being heard in the Land Court of Queensland, Australia.

 

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