Aldi signs up to ATO transparency code
Updated: 11:50 AEST
Aldi Australia has signed up to the Australian Government’s voluntary Tax Transparency Code (TTC), effective from today.
The discount supermarket retailer said it has ‘consistently maintained an open and positive working relationship with the Australian Taxation Office,’ and that since achieving profitability in the Australian market, has paid on average 31 per cent of pre-tax profits to the ATO.
In a statement to Inside Retail, Tom Daunt, CEO of Aldi Australia said the company recognised the importance of public disclosure in supporting tax policy debate and building trust in the Australian tax system.
“We comply with all statutory tax reporting obligations, however we have previously chosen to limit the information available to our competitors about our financial performance,” he said.
“After assessing the impact of implementing the code on our Australian operations, we can now confirm we have made the decision to sign up to the voluntary Tax Transparency Code.”
“As Australia’s fastest growing supermarket, we have a strong obligation to our customers, suppliers and the wider community and take our corporate responsibilities seriously.
“Aldi supports greater tax disclosure in Australia as this reflects our commitment to regulatory compliance and increased transparency on our tax strategy and corporate governance.”
The German supermarket chain is one of a small number of private companies to sign up to the TTC and will publish a voluntary annual report on its website as part of its commitment.
The first report is due to be published in September 2017.
Aldi operates over 460 stores, employs 10,000 people, and partners with approximately 1,000 Australian suppliers.
The supermarket retailer said it has invested over $4 billion in capital expenditure into the Australian economy and that all profits are reinvested into its Australian operations.
Perhaps a little unnerved by the continued market share gains of Aldi, Wesfarmers outgoing CEO, Richard Goyder, questioned whether or not overseas retailers are paying their fair share of tax two years ago.
The recent entrance of international retailers has brought the tax contribution of new market entrants into the spotlight, and heightened the level of scrutiny and compliance checking by the Australian Government.
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