JOHANNESBURG (miningweekly.com) – Diversified miner Rio Tinto on Tuesday revealed that its tax payments and royalties paid had increased from $4-billion in 2016, to more than $5.1-billion in 2017, with the majority of taxes paid in Australia.
In its latest voluntary taxes paid report, published on Tuesday, Rio Tinto detailed that Australia’s tax and royalties take had increased to $3.8-billion, from $2.9-billion in 2016.
The group further stated that it would pay Australia in June 2018 a further final tax installment of $1.2-billion, which related to the 2017 calendar year.
The group’s tax payments totalled $387-million in Canada, $228-million in Mongolia, $93-million in South Africa, $81-million in the UK and $78-million in the US.
“Our voluntary taxes paid report highlights how Rio Tinto continues to be a significant contributor in the countries where we operate through the taxes, royalties and wages we pay,” CFO Chris Lynch said in a statement.
Corporate income tax comprised about half of Rio Tinto’s tax payments globally, followed by government royalties, other taxes and employer payroll taxes.
Lynch added that investment capital was “internationally mobile” and stressed the importance of a competitive tax system to encourage the development of new projects. He welcomed the reduction in the US corporate tax rate from 35% to 21%.
CEO Jean-Sebastien Jacques has been lobbying for a reduction in Australia’s corporate tax rate. He recently said, according to Australian media outlets, that the group’s investment focus could shift to the US unless Australia lowers its company tax rate.
Rio Tinto paid $1.64-million in corporate income tax in Australia last year, according to the 2017 report.