Rio Tinto to pay additional $423M in Australian tax settlement

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Rio Tinto (NYSE:RIO) said Wednesday it reached a settlement with the Australian Taxation Office, resolving a longstanding transfer pricing dispute related to the miner’s marketing hub in Singapore.

As part of the agreement, Rio (RIO) said it will pay an additional tax of A$613M (US$423.2M) to the ATO, covering transfer pricing related to commodities such as iron ore and aluminum during 2010-21 and extending to 2026.

The ATO said the settlement ends all tax disputes related to Rio’s (RIO) Singapore marketing hub, bringing the company’s total payment connected to the disputes to nearly A$1B.

The company said it also reached an agreement with the Inland Revenue Authority of Singapore, ensuring it will not be subject to double taxation.

Rio Tinto (RIO) sports a forward dividend yield of more than 13%, Jordan Sauer notes in a bullish analysis published on Seeking Alpha.