Brambles Announces About USA Tax Changes

The USA Government has recently passed the Tax Cuts and Jobs Act which contains significant tax reform measures

Brambles is currently considering the impact of the law on its financial position as at 31 December 2017 and on its effective tax rate going forward.

Brambles’ current estimate, which is subject to further analysis and clarification of a number of items, is that there will be a one-time non-cash benefit as at 31 December 2017 to the Group’s income tax expense of between US$125m and US$155m. This benefit relates to a reduction in the Group’s USA net deferred tax liability due to the decrease in the USA federal corporate tax rate from 35% to 21%.

Apart from the tax rate reduction, there are a number of measures which could negatively impact Brambles. Subject to further review and analysis, Brambles’ 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 will provide an update to the market on its assessment of the impact of the USA tax law change on its deferred tax position, and any potential impact on the future effective tax rate of the Group, when it releases its first half results on 19 February 2018.


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