In a submission to the Senate inquiry into tax avoidance, ALDI Australia revealed its profitability and defended its behaviour on tax.
The submission reveals the retailer’s sales growth from $3.14 billion in 2010 to fractionally under $5 billion in 2013. It also reveals the company’s pre-tax profit more than doubled over the same period from $121 million to $261 million.
The submission, which is signed by ALDI Australia Chief Executive Tom Daunt, says ALDI contributes to the Australian economy through the payment of significant company income tax, fringe benefits tax, payroll tax, land tax and stamp duty and the collection of GST (on behalf of the ATO) and PAYG withholding (on behalf of employees).
“Over the four year period to December 31, 2013, ALDl’s effective tax rate has ranged between 29 per cent and 34 per cent, in comparison to the company tax rate of 30 per cent,” the submission states.
“The actual income tax paid by the ALDI Australia Group over the four-year period to December 31, 2013 is $238 million, which represents an average of $60 million per annum over the same period. This represents an average effective tax rate of 32 per cent, which is above the company tax rate of 30 per cent.”
ALDI Australia also reports collecting GST of $677 million over the same period on behalf of the ATO and says it has made significant multimillion dollar payments relating to fringe benefits, land and payroll tax and stamp duty.
“Since commencing operations in Australia, ALDI has also invested $4 billion in capital expenditure into the Australian economy.
“Additionally, 100 per cent of profits have been reinvested back into Australia,” the submission continues. “As one of Australia’s leading retailers, with over 9,000 employees, ALDI has a strong obligation to our customers, suppliers and the wider community and takes our corporate responsibilities seriously.”
Labor senator Sam Dastyari, who also chairs the Senate Economics References Committee, has questioned the evidence provided by ALDI Australia and said there were moves to have the retailer called before the Senate inquiry in coming weeks.