Monday 20 November 2017

CRH tells shareholders tax structure is legal, paying effective corporation tax rate of 30pc

ICL, a subsidiary of CRH plc, is involved in production and supply of bagged cement products. Photo: Bloomberg
ICL, a subsidiary of CRH plc, is involved in production and supply of bagged cement products. Photo: Bloomberg
Michael Cogley

Michael Cogley

Buildings materials firm CRH said that its tax structure is entirely legal and that its effective tax rate last year was in the region of 30pc.

The company has operations in Luxembourg through both service subsidiaries and a financing firm.

Independent shareholder David McCabe asked the board whether or not CRH's governance committee had approved the use of the Luxembourg-based subsidiary.

CRH chairman Nicky Hartery said the company has employed a legitimate tax structure.

Mr Hartery was speaking at the company's AGM in Dun Laoighre this morning.

Another shareholder, Seamus May, put questions to the board about the use of offshore funds to finance acquisitions.

Mr May accused the company of attempting to add his own company to a "family of secretly owned companies".

The company's chairman deemed his allegations to be without foundation.

Since the end of last year CRH has splashed out €6.5bn on acquisitions from rivals Holcim and Lafarge.

The Irish firm, which is headed up by chief executive Albert Manifold, recorded a 9pc increase in pro forma sales in the first quarter of the year.

Speaking about the results in an interim statement to shareholders before he meeting Mr Manifold said: "The continued positive economic momentum in the US this year has resulted in improved demand for aggregates and ready-mixed concrete together with positive pricing trends compared with the first quarter of 2015."

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