The Sydney Morning Herald is reporting Sydney Airport, which is owned by Macquarie Bank, has paid no tax in the ten years since it was privatised.
It has achieved this, according to the article, by not paying down its $8.5 billion debt bill and recording a bottom-line profit. If it did that it would have to pay tax on the profit.
From the article, by journalist Michael West:
Interest is tax deductible. As the airport is a monopoly asset and an essential service with stable revenues – unlike most other companies – it can afford to carry extremely high debt.
A consortium led by Macquarie Bank paid $5.6 billion for the airport in June 2002.
Here’s what Sydney Airport CEO Kerrie Mather told Business Insider Australia this morning:
Sydney Airport complies with all Australian tax laws.
Sydney Airport’s investors have paid hundreds of millions of dollars in taxes since privatisation as a result of receiving unfranked distributions.
Over the past decade, Sydney Airport has invested more than $2 billion in airport improvements.
The airport facilitates and generates $27.6 billion for the economy a year, directly and indirectly supporting 283,700 jobs including 28,000 jobs on airport across 800 businesses.
Read more here.
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