Rio publishes tax report as MRRT passes Senate

 

Rio Tinto has published its "Taxes paid report" which outlines the US$10.2 billion it has paid in tax globally this financial year as the mining tax passes the Senate.

According to the miner, the level of tax it paid in 2011 was more than a third that paid in 2010.

Approximately 63% of this was corporate tax, while government royalties and payroll taxes accounted for 22% and 5% respectively.

Rio‘s CFO, Guy Elliot, explained that it chose to "disclose these details voluntarily because we believe this level of transparency helps us to retain our licence to operate, promotes government accountability, and plays a role in combating corruption".

It comes as a number of governments push the Extractive Industries Transparency Initiative (EITI).

Elliot went on to say "given that such rules are currently envisaged by both the European Union and the United States, we believe governments should work together to adopt a consistent global approach, which establishes disclosure requirements and thresholds that are proportionate.

"We believe any mandatory rules need to remain focused on the ultimate objectives, both for governments and for companies: good tax governance, accountability, transparency, and the fight against corruption"

EITI compliant and candidate countries are mainly around Africa and through the Middle East.

 

Image: Europeword.com

 

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