Equipment & Technology, Logistics, Ports & Terminals

Trump’s tax moves to save Brambles $160m

Australian pallet, crate and container supplier Brambles expects a one-time improvement of between US$125 million and US$155 million (A$160m-A$198m) in its balance sheet as a result of US President Donald Trump’s tax reforms.

The Trump Administration recently passed its Tax Cuts and Jobs Act, which – among many other measures – decreased the country’s federal corporate tax rate from 35% to 21%.

Brambles – which does significant business in the United States – has crunched the numbers, and reckons the tax changes will create the substantial one-time, non-cash benefit to its group income tax expense.

The company’s ongoing effective tax rate will remain roughly the same, however, with Brambles recognising a number of changes to the US tax legislation that could impact it in a negative way.

“Apart from the tax rate reduction, there are a number of measures which could negatively impact Brambles,” the company told the ASX on January 2.

“Subject to further review and analysis, Bramble’s preliminary assessment of the total tax reform package is that any change to the Group’s effective tax rate is unlikely to be material.”

Brambles said it would provide an update on its assessment of the US tax changes on February 19, 2018, when it plans to release its first half results.

Leave a Reply

Send this to a friend