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Who Needs Switzerland?

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Certainly not commodities giant Glencore, which maybe just made high-interest-rate loans to itself to cut its Aussie tax bills.

Glencore, one of the world's biggest mining and trading houses, on Friday denied claims by an Australian newspaper that its coal division had paid no taxes in Australia in the past three years on income of A$15 billion ($14.10 billion).

The Sydney Morning Herald reported that Glencore Plc cut its tax exposure by claiming tax breaks on expensive loans that were not necessary. Interest rates on the loans, extended by Glencore's associates overseas, were up to double what it would have had to pay banks, the newspaper said….

A Glencore spokesman said the claim that no income tax was paid over the last three years was "preposterous…."

"Glencore complies with all tax rules and regulations in Australia and in each jurisdiction where we operate," the company said in a statement in response to the article.

Glencore denies media claim it avoided Australia taxes [Reuters]



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