Rio Tinto to pay US$277 M to the Mozambican Tax Authority

rosariofernandestax_photo

(2015-04-28) The Rio Tinto mining company must pay around US$277 M to the Mozambican state for the 2011 purchase of Riversdale’s assets. The information was revealed last Friday by the president of the Tax Authority (AT), Rosario Fernandes.

This is an operation that entailed a ‘trial of strength’ between the Mozambican authorities and the Australian mining company, because the latter believed that it held no fiscal obligation towards Mozambique as the purchase had been made abroad. The operation has been under discussion for the last four years.

“By an express edit, already published, issued by a private tax executions arbitration, dated from the 13th of April this year, Riversdale, of the subsidiary Rio Tinto Coal Mining, is expressly summoned (by the edict) to, regarding the tax debt to the State, pay the amount of 8,617,474,657.82 meticais (or the equivalent of around US$277 M),” said Rosário Fernandes, cited by ‘O País’.

The President of the Mozambican Tax Authority (Autoridade Tributária / AT) was speaking at the closing of a journalists’ training session in matters of taxation, customs education and popularisation of taxes.

Fernandes explained that this debt relates to the taxation of capital gains from the selling of assets consummated in 2011, which has been in tax litigation until now.

A year ago, the chairman of the Tax Authority had promised that the ‘Riversdale case’ would be taken to the last consequences in order to recover the due tax, on the grounds that “taxation is an imperative of the Law.”

“In the 2015 scenario, besides the fiscal execution by fiscal calendar that has been traditional, we will proceed to collect extraordinary income, where many result from fighting against tax evasion, regardless of what ends up being extraordinary revenue,” said Rosário Fernandes.

The sale of the assets belonging to Riversdale in the mines of Benga and Zambezi, in Tete province, gave Rio Tinto a revenue of US$3.6 billion.

Source: O País
Photo: File / Mozambican Tax Authority president, Rosário Fernandes

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