Rio Tinto’s latest Taxes paid report has revealed the company paid $4 billion in taxes and royalties in 2016 and made more than $35 billion in direct economic contribution to related communities.
The $4 billion takes the total amount of direct tax contributions to more than $50 billion since the company first started publishing its Taxes paid report in 2010.
Most of Rio’s taxes were paid in Australia – paying $2.9 billion – followed by Canada ($249 million), Mongolia ($215 million) and Chile ($205 million). It also paid $102 million in the United States and $100 million in South Africa.
The largest component of the company’s tax was through corporate income tax, followed by government royalties and employer payroll taxes.
Rio Tinto chief financial officer Chris Lynch highlighted that the company pays the most taxes to countries where it has mining and processing operations.
“Rio Tinto is a major contributor to society and we are proud of the economic activity and wealth we generate through taxes, royalties, employee wages, payments to suppliers and investment in communities,” he said.
“From both a global and local perspective, our taxes paid report helps inform our stakeholders about the role we play and the impact we have in the community.”
Last week, the Australian Commissioner of Taxation required Rio Tinto to pay an additional $447 million in tax for the years 2010-2013 following a pricing dispute of certain transactions between Rio Tinto entities based in Australia and its commercial centre in Singapore.