Rio Tinto hit with a $447m taxation bill
Mining giant Rio Tinto has been sent a $447 million tax bill by the Australian Taxation Office.
In a statement released last week, the London-based company said the ATO had issued amended income tax assessments to Rio Tinto for the calendar years 2010 to 2013, requiring it to pay additional tax of $A379 million, plus interest of $A68 million, a total of $A447 million.
Rio said it would challenge the assessment but would pay half the bill this month.
Rio said it had paid $25.5 billion of taxes and royalties in Australia during the disputed four-year period.
“The amended assessments do not relate to any tax avoidance schemes, as confirmed by the ATO. No penalties are payable,” it said.
“The issue in dispute is the pricing of certain transactions between Rio Tinto entities based in Australia and the group’s commercial centre in Singapore.”
The company said it voluntarily approached the ATO more than a decade ago seeking to confirm its pricing arrangements.
“The transfer price in dispute is in line with an outcome agreed to by the ATO years before 2010.
“Rio Tinto considers that its pricing is in accordance with the internationally recognised OECD guidelines and Australian domestic law,” it said.
Meanwhile, the executive sacked by Rio Tinto over a controversial $13.8 million payment to a consultant to an African president is back in the mining game.
Alan Davies, who was sacked in November, has re-emerged as the chief executive of London outfit, Moxico Resources PLC, which is developing a large opencut copper mine in Zambia, Africa.
Rio Tinto has copped an additional $447 million tax bill.