Canon Australia nets $15 million in tax credits!

Canon Australia achieved increased sales of around $400K in its 2017 financial year, from $632 million to $672K million, but with a pre-tax profit of just $1.73 million.

This figure was boosted by $15.8 million in tax credits, with the company thus achieving a net profit after tax of $17.6 million. How  amazing!

Over the past seven years (2011-2017), Canon Australia has made sales of over $4.5 billion, with total profits after tax of just over $20 million – effectively all in tax credits. During this entire seven-year period, it has paid no net tax, but instead enjoyed tax benefits from the ATO of over $35 million.

This article is based on ‘The Company’ rather than conbsolidated results of the entire group of companies under the Canon Australia umbrella, as this better reflects the outcomes in the photographic markets Canon competes in.

Over these years cost of sales – closely related to payments for landed cost of goods remitted to the parent company – is roughly two-thirds of total costs, with local operations making up the remaining third. As noted above, the profit component has been generally negligible – and losses accrue more tax credits!

The financial report also revealed that Canon has sold Oce-Australia Pty Ltd to Oce Holding BV at around $15 million, with the divestment taking place on January 1, 2018.

 

 

 

 

 

 

 

 

 

 


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