Rio Tinto To Pay Addl. Levy Of A$613 Mln To Settle All Tax Disputes In Australia

Rio Tinto Group (RTPPF.PK,RIO.L,RIO,RTNTF.PK), an Anglo-Australian metals and mining firm, said on Wednesday that it has reached deal with the Australian Taxation Office or ATO to solve all tax disputes.

As part of the move, the firm will pay an extra tax of A$613 million to ATO for the 12 years from 2010 to 2021.

The sum is in addition to the A$378 million of tax paid with respect to the original amended assessments issued by the ATO.

Over this period, Rio Tinto has paid nearly A$80 billion in tax and royalties in Australia.

The company noted that the deal resolves the disagreement pertaining to the interest on an isolated borrowing used to pay an intragroup dividend in 2015.

The Group also added that it separately resolved the pricing of certain transactions between Rio Tinto entities based in Australia and its commercial centre in Singapore from 2010 to 2021 and provides certainty for a further five-year period.

It has also reached a settlement with the Inland Revenue Authority of Singapore (IRAS) with regard to the transfer pricing for the same 12 year period.

The compromise initiative with the two countries protects the company from double taxation.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT