Chris Lynch

Mining major Rio Tinto has paid $7.1bn in taxes globally in 2014, despite weaker commodity prices.

The company has prepared annual taxes paid report for the past five years, which it provided details of the taxes paid in the jurisdictions in which it operates globally.

According to the report, Rio Tinto continues to make a significant contribution to public finances around the world.

The company also details payments that are made over $1m to governments in the countries where it operates.

In 2014, the company paid most of the taxes and royalties in Australia ($5.6bn), Canada ($432m), Chile ($262m), US ($211m), Mongolia ($185m), South Africa ($110m), France ($106m), Guinea ($67m), Singapore ($44m) and UK ($29m).

Under the voluntary report, the company’s global effective tax rate during the year stood at 43%.

"The taxes paid report is important evidence of our commitment to taxation transparency."

Rio Tinto paid an average effective rate of about 42.5% between 2010 and 2014.

Rio Tinto chief financial officer Chris Lynch said: "Through our tax and royalty contribution, investments, employment, local purchasing and contracting, we are a major generator of wealth and economic activity. We are very proud of this record.

"The taxes paid report is important evidence of our commitment to taxation transparency. We were a founding member of the Extractive Industries Transparency Initiative and strongly advocate the need to appropriately disclose payments to governments around the world."

During 2014, primary focus was on efforts to eliminate base erosion and profit shifting (BEPS) and to tackle this issue, the company plans to adopt a coherent global approach and improve cross-border cooperation.

Image: Rio Tinto chief financial officer Chris Lynch. Photo: courtesy of Rio Tinto.