Multinational mining giant Rio Tinto has settled a decade-long tax dispute with the Australian Taxation Office, handing over almost $1 billion in unpaid taxes after an investigation of its Singapore marketing hub.
The settlement is one of the largest in Australian tax history, with the mining giant paying about $1 billion over and above its original tax filings, following in the path of other multinationals forced to pay up.
The company will pay an additional $613 million for unpaid tax between 2010 and 2021, on top of $378 million it has paid back on amended assessments issued by the ATO, including interest and penalties.
The miner was investigated by the ATO’s Tax Avoidance Taskforce for using Singapore as a marketing hub of products, including aluminium and iron ore, to reduce Australian tax bills in a practice known as transfer pricing. ATO
Deputy Commissioner Rebecca Saint said importantly the settlement locks in future tax flows to Australia going forward.