This article is 7 years old. Images might not display.
Last week, the Australian Commissioner of Taxation issued amended income tax assessments to Rio for the calendar years 2010 to 2013, requiring the company to pay additional tax of A$379 million plus interest of $68 million.
Under dispute is the pricing of certain transactions between Rio entities based in Australia and the company’s commercial centre in Singapore.
The company said it voluntarily approached the ATO more than a decade ago seeking to confirm its pricing arrangements and the transfer price in dispute was in line with an outcome agreed by the ATO for years prior to 2010.
Rio will pay 50% of the outstanding amount this month, but will challenge the amendments.
The company said the payment would be in addition to the $25.5 billion of taxes and royalties it paid in Australia during the same four-year period.
Rio said today that for 2016, US$2.9 billion of its total $4 billion tax payments were paid in Australia.
Rio chief financial officer Chris Lynch said releasing the seventh annual edition of the Rio Tinto Taxes paid report helped the public better understand its contribution to society.
“Rio Tinto is a major contributor to society and we are proud of the economic activity and wealth we generate through taxes, royalties, employee wages, payments to suppliers and investment in communities,” he said.
“From both a global and local perspective, our Taxes paid report helps inform our stakeholders about the role we play and the impact we have in the community.”
Direct tax and royalty contributions to governments since 2010 are now over $50 billion.
Rio added that in addition to taxes and royalties, it also made a direct economic contribution of more than $35 billion to host nations.
The company said last week that it was committed to supporting local businesses in the development of its Pilbara iron ore deposits, with the bulk of the A$180 contracts for the Silvergrass mine going to Western Australian companies.
And more than two thirds of the contracts for the Amrum bauxite development near Weipa have gone to Queensland companies.
Rio shares closed at $60.01 on Friday.
