Rio ups offshore staff amid tax row

RIO Tinto has bulked up its workforce at its controversial Singapore marketing hub which is being probed by the Australian Taxation Office.

Rio’s Singapore office hired an additional 80 people last year taking its overall headcount to more than 430.

The Singapore office is one of the few locations where Rio has increased its workforce in recent years as it has undertaken heavy cost-cutting.

The details are contained in Rio’s latest taxation report to be released today which shows the mining major paid $4.87 billion ($US3.76 billion) in taxes and royalties in Australia in 2017.

Rio paid $US1.87 billion in Australian corporate income, up from $US1.31 billion in 2016 as its bottom line benefited from a combination of stronger commodity prices, cost cutting and asset sales.

Australia houses about half of Rio’s assets and its Pilbara iron ore mines are its biggest money-spinner.

Globally Rio paid $US5.13 billion in taxes and royalties in 2017, including $US1.79 billion in company income tax.

The taxman has hit Rio with an amended tax assessment of close to $500 million after disputing the way it has priced transactions which have run through its office in lowtaxing Singapore since 2009.

BHP’s dispute with the taxman, which also focuses on its Singapore office, has passed $1 billion and covers a decade long period.