Rio Tinto statement on penalty assessment
16 September 2021 - 4:29PM
Business Wire
On 2 March 2021 the Australian Taxation Office (ATO) issued Rio
Tinto Limited with amended assessments related to the denial of
interest deductions on an isolated borrowing used to pay an
intragroup dividend in 2015. The borrowing was repaid in 2018.
The ATO has today issued further assessments in relation to the
same transaction levying penalties of A$352m (US$257.9m) and
reducing the original interest assessment from A$47m to A$27m
(US$19.8m).
Borrowing to fund the payment of a dividend is a normal
commercial practice. Rio Tinto is confident of its position and
will dispute the primary tax and penalty assessments. In accordance
with the usual practice Rio Tinto has paid 50% of the primary tax
up-front as part of the objections process. Penalties and interest
are not required to be paid until the primary tax matter is
resolved.
Rio Tinto Limited paid more than A$8.4bn (US$6.4bn) of
Australian income tax during the relevant period.
Please direct all enquiries to
media.enquiries@riotinto.com
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version on businesswire.com: https://www.businesswire.com/news/home/20210915006227/en/
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Rio Tinto plc
6 St James’s Square London SW1Y 4AD United Kingdom
T +44 20 7781 2000 Registered in England No. 719885
Rio Tinto Limited
Level 7, 360 Collins Street Melbourne 3000 Australia
T +61 3 9283 3333 Registered in Australia ABN 96 004 458 404
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