Rio Tinto Gets Additional A$447 Million Tax Bill

By Tapan Panchal

LONDON--Rio Tinto PLC (RIO.LN) said Wednesday that it has been handed a 447 million Australian dollars ($340.19 million) additional tax bill by authorities in Australia due to a pricing dispute between two of it entities.

The mining giant said it will be required to pay tax of A$379 million plus A$68 million interest payment for the calendar years 2010 to 2013. The payment is in addition to the $A25.5 billion of taxes and royalties Rio Tinto paid in Australia during the same four-year period.

Rio Tinto said the amended tax assessments relate to a pricing dispute of certain transactions between the company's Australian and Singapore entities. The tax assessments do not relate to any tax avoidance schemes, the company added.

The company intends to challenge the amended tax assessments, but will pay 50% of the total amount to the Australian Tax Office this month. It also will seek double taxation relief in accordance with the Australia-Singapore double tax treaty.

London listed shares of Rio Tinto at 1112 GMT trading 0.6% higher at 3,285 pence.

Write to Tapan Panchal at [e-mail]

(END) Dow Jones Newswires

April 05, 2017 07:45 ET (11:45 GMT)

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