Brambles estimates $160+M tax relief from US reforms

Australian-headquartered global supply-chain logistics group Brambles has announced that is it considering the implications of US President Donald Trump’s recent tax cuts in the Tax Cuts and Jobs Act will have on its US business.
“Brambles’ current estimate, which is subject to further analysis and clarification of a number of items, is that there will be a one-time non-cash benefit as at 31 December 2017 to the Group’s income tax expense of between US$125m ($160 million) and US$155m ($200 million),” the company wrote in a statement.
The change reflects a reduction in the Brambles’ US net deferred tax liability due to the decrease in the US federal corporate tax rate from 35 per cent to 21 per cent.
The company noted that a number of measures in the tax reform could negatively impact Brambles, though its preliminary assessment of the total tax reform package is that any change to its effective tax rate is unlikely to be material.
“Brambles will provide an update to the market on its assessment of the impact of the USA tax law change on its deferred tax position, and any potential impact on the future effective tax rate of the Group, when it releases its first-half results on 19 February 2018,” the company added.