Rio Tinto Shells Out Over $7 Billion In Taxes
Rio Tinto claims it shelled out $7.1 billion* in taxes worldwide in 2014 with around three quarters of this tipping into the Australian government’s coffers.
In a statement released this morning the company said that globally, their effective tax rate was 43 per cent last year.
Australia’s cat got the cream with $5.6 billion* paid out in taxes and royalties by the company. The Canadian government received $432 million*, Chile $262 million* and the United States collected $211 million*. Mongolia, South Africa, France, Guinea, Singapore and UK also received a slice of the Rio Tinto tax pie.
Rio Tinto’s chief financial officer, Chris Lynch, said Rio Tinto was a major contributor to the economies of its host nations.
“Through our tax and royalty contribution, investments, employment, local purchasing and contracting, we are a major generator of wealth and economic activity. We are very proud of this record,” Mr Lynch said.
“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.
“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.”
(* U.S. dollars)