Rio Tinto Says It Paid US$7.1 Billion In Taxes In 2014

Rio Tinto Coal Mozambique operation (Pic By Rio Tinto)Mining major, Rio Tinto said its latest Taxes paid report shows the group has continued to make contribution to public finances around the world and details payments made to governments in the countries where it operates.

The report details US$7.1 billion in taxes paid by the company around the world in 2014 with the voluntary report revealing that the majority of taxes and royalties were paid in Australia (US$5.6b), Canada (US$432m), Chile (US$262m), United States (US$211m), Mongolia (US$185m), South Africa (US$110m), France (US$106m), Guinea (US$67m), Singapore (US$44m) and UK (US$29m).

The report shows last year’s global effective tax rate was 43 per cent. Between 2010 and 2014, the company paid an average effective rate of about 42.5 per cent.

Rio Tinto chief financial officer Chris Lynch said the group continues to be a major contributor to the economies of its host nations saying through tax and royalty contribution, investments, employment, local purchasing and contracting, they are a major generator of wealth and economic activity.

“The Taxes paid report is important evidence of our commitment to taxation transparency. We were a founding member of the Extractive Industries Transparency Initiative and strongly advocate the need to appropriately disclose payments to governments around the world,” said Lynch.

“2014 has been a year of significant change in the international tax landscape, with a particular focus on efforts to eliminate Base Erosion and Profit Shifting (BEPS). Rio Tinto agrees with the aims of these efforts. Governments must also be mindful not to inadvertently damage the investment environment when implementing BEPS proposals.

“To tackle BEPS issues effectively, we must adopt a coherent global approach and improve cross-border cooperation rather than take unilateral action that adds to compliance costs and dampens trade and investment.”

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