Last year, $322 million, compared to just over $1 billion the year before, was transferred overseas before being taxed in the form of transfers to related companies, while another half-billion was siphoned off in recharges to unspecified associates.
There is simply not enough disclosure about where the money is going or why, but the activities of EnergyAustralia on the tax front have not escaped the attention of the Tax Office. The group disclosed that the ATO had been investigating its affairs.
One of EnergyAustraia’s Mount Piper generators in NSW came online on Tuesday morning, but too late according to a release filed in Hong Kong which said that the company is out billions in potential profit from electricity forward contracts. The company was forced to purchase expensive electricity from the market after having troubles with both its Mount Piper and Yallourn power stations in Victoria.
The company said the overall increase in energy prices will yield higher returns in the long run, so long as it can keep its coal and gas power stations in operation and “purchase fuel as required, generate and dispatch electricity at the higher prices”.
As Australians pay the price for decades of poor energy planning two Hong Kong billionaires Michael Kadoorie and Li Ka-Shing are cleaning up.