Anglo-Australian mining giant Rio Tinto (ASX, LSE & NYSE: RIO) has voluntarily published its “Taxes paid report,” outlining the US$10.2 billion it has paid in tax globally this financial year.
Rio’s CFO, Guy Elliot, explained the company chose to disclose these details because it believes transparency will help Rio to retain its license to operate, promote government accountability, and “play a role in combating corruption”.
The report comes only a day after the Australian government approved its controversial mining legislation that imposes a 30% tax on coal and iron ore miners, such as Rio Tinto.
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.
It comes as a number of governments push the Extractive Industries Transparency Initiative (EITI).
“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,” said Elliot.
“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,” he added.
