Mining giant Rio Tinto expanding controversial Singapore marketing hub amid Australian Taxation Office probe

RIO Tinto has bulked up its workforce at its controversial Singapore marketing hub, which is being probed by the Australian Taxation Office.

RIO Tinto has bulked up its workforce at its controversial Singapore marketing hub, which is being probed by the Australian Taxation Office.

Rio’s Singapore office hired an extra 80 people last year, taking its overall headcount to more than 430.

The Singapore office is one of the few locations where Rio has increased its workforce in recent years as it has undertaken heavy cost cutting.

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The details are contained in Rio’s latest taxation report to be released today, showing the mining major paid $US3.76 billion ($4.87 billion) in taxes and royalties in Australia last year.

Rio Tinto chief executive Jean-Sebastien Jacques.

Rio, led by chief executive Jean-Sebastien Jacques, paid $US1.87 billion in Australian corporate income, up from $US1.31 billion in 2016 as its bottom line benefited from stronger commodity prices, cost cutting and asset sales.

Australia houses about half of Rio’s assets and its Pilbara iron ore mines are its biggest money spinner.

Globally, Rio paid $US5.13 billion in taxes and royalties in 2017, including $US1.79 billion in company income tax.

Mining giant Rio Tinto is being probed by the ATO.

The taxman has hit Rio with an amended tax assessment of close to $500 million after disputing the way it has priced transactions which have run through its office in low-taxing Singapore since 2009. BHP’s tax dispute, which also focuses on its Singapore office, has passed $1 billion and covers a decade.

Rio Tinto and BHP have vigorously defended the use of their Singapore operations, saying they were set up to bring them closer to their key customers in Asia, not to lower their tax bills.

Mining giant Rio Tinto is being probed by the ATO.

They also argue to amounts are not minor when their total tax bill over the periods in question are taken into account.

“While we are satisfied these transactions align with tax requirements, differences of interpretation between companies and tax authorities can occur,” Rio’s tax report says.