ATO auditing Glencore

GLENCORE has revealed it is being audited by the Australian Tax Office and is disputing two tax assessments.
ATO auditing Glencore ATO auditing Glencore ATO auditing Glencore ATO auditing Glencore ATO auditing Glencore

 

Kristie Batten

In answers to the Senate’s inquiry into tax avoidance, Glencore said it was working with the ATO to resolve the matters in dispute.

“With respect to the tax objection matters, $A42 million of tax has been paid pending resolution of the matter,” the company said.

The company revealed its total Australian revenue in 2014 was $US12.7 billion ($A15.9 billion) and it posted a pre-tax loss of $1.3 billion.

Glencore said it paid $A77 million in company tax, $93 million in payroll tax and $12 million in fringe benefits tax in Australia last year.

But the company said it had paid $9 billion in taxes and royalties in Australia since 2007.

Glencore also reported $US8.9 billion in sales to related parties last year.

“It is not practical to identify the exact number of these related party transactions,” Glencore said.

It listed 56 related parties its Australian arm had done business with, 13 of which were in Singapore.

During the enquiry, miners have faced scrutiny over offshore activities, particularly Singapore marketing hubs.

Glencore’s coal contracts for its Australian mines were negotiated through Singapore.

The company confirmed it was in the process of closing the Singapore office

“Going forward, coal sales contracts will be directly between the relevant Australian mining company and end customer,” Glencore said.

Mining giant BHP Billiton last month revealed it was facing a $A522 million tax bill in Australia for its Singapore marketing hub.

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