FMG kicks off mining tax challenge

Fortescue Metals Group is set to appear before the High Court in Canberra today to kick off its long-awaited challenge to the mining tax.

The company lodged documents with the High Court in June last year, and said the minerals resource rent tax challenge would be based on four key areas:

  • Discriminating between the states
  • Depriving state sovereignty
  • Giving preference to other states
  • Restricting a state's ability to encourage mining

FMG's court challenge is not the only MRRT investigation currently underway, with the Senate voting last month to hold another inquiry into the policy after documents revealed it had raised only $126 million.

The Greens and Coalition teamed up to open the inquiry, which will determine why the policy collected far less than the $2 billion forecast.

While there's still some confusion as to which companies are liable under the MRRT, forecasts earlier this year estimated FMG had paid little to no mining tax since the scheme took effect.

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