What does Amcor expect its effective tax rate to be moving forward?
Amcor operates in over 40 countries with corporate tax rates varying between 10% and 40%. As a result, the effective tax rate for the Amcor group is driven by the mix of profits around the group, the countries that profit is derived in and the relativity of the local corporate tax rates. It is inherently difficult to be definitive on expected future tax rates due to one off permanent items, tax initiatives and incentives and occasional tax re-assessment in various jurisdictions. Amcor is currently completing a detailed review of the tax position of the recently acquired Alcan Packaging businesses and expects to be in a position to provide further guidance following the release of the full year results for the 30 June 2010 financial year. In the interim, the illustrative combined group (Amcor + Alcan) effective tax rate of 26% used in the Prospectus for Amcor’s August 2009 Entitlement Offer continues to be an appropriate guide.
Amcor operates in over 40 countries with corporate tax rates varying between 10% and 40%. As a result, the effective tax rate for the Amcor group is driven by the mix of profits around the group, the countries that profit is derived in and the relativity of the local corporate tax rates. It is inherently difficult to be definitive on expected future tax rates due to one off permanent items, tax initiatives and incentives and occasional tax re-assessment in various jurisdictions. For the year ended 30 June 2011, Amcor expects the effective tax rate before significant items to be approximately 26%.
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