Aussie mining tax could breach treaty
Mining tax could face international challenge
Foreign firms may take action against the Australian Government’s 40% mining
tax under the terms of bilateral treaties, The Daily Telegraph reports.
Australian prime minister Kevin Rudd introduced the tax last week in a bid to
curb so-called “super profits” by mining companies, which he said are owned by
shareholders outside Australia.
The Telegraph quotes Alex Baykitch, a partner in the Sydney office of Holman
Fenwick Willan, who said legal action could be take under bilateral investment
treaties (BIT) signed with nations including China.
“[This] is a classic example of a potential breach of a host state’s
obligations under a BIT”, Baykitch said.
Read the full story:
Australian
tax could breach treaty with China