Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-Macquarie CEO says no plans to relocate overseas to avoid Australian bank tax

Published 16/06/2017, 10:47 am
© Reuters.  UPDATE 1-Macquarie CEO says no plans to relocate overseas to avoid Australian bank tax
MQG
-

* Macquarie rules out near-term move overseas

* CEO says offshore move possible in longer term

* Bank tax to cost A$50 million after tax annually: CFO (Adds more CEO comments, financial impact of tax)

By Jamie Freed

SYDNEY, June 16 (Reuters) - Macquarie Group Ltd MQG.AX Chief Executive Nicholas Moore said on Friday Australia's biggest investment bank had no plans to move offshore after the government imposed a $4.6 billion tax on major banks.

"We've got no current plans to relocate to Singapore or anywhere else," he told a parliamentary inquiry. "There are absolutely no plans for that."

Macquarie this month had declined to rule out an overseas move after the government introduced the surprise tax on certain bank liabilities including corporate bonds, commercial paper and certificates of deposit at Australia's five biggest banks. on Friday said he could not guarantee Macquarie's headquarters would remain in Australia in the longer term as that would be subject to the broader needs of the organisation.

"As a longstanding position going back to 2007 we say that the location of all our businesses are a matter of ongoing review," he said. "Tax rates do have an impact of course. We look to the return for our shareholders and that is an after-tax return."

Analysts and investors have said an eventual move to the United States or Europe could make sense as it grows in those regions.

Macquarie Chief Financial Officer Patrick Upfold said the bank tax was expected to cost the company around A$50 million ($37.96 million) in annual after tax earnings. Macquarie last month reported a record annual profit of A$2.22 billion. ($1 = 1.3172 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.