The Sydney Morning Herald has published correction regarding its article that Glencore has paid no tax over the last three years.
Last month the international miner was accused of failing to pay any tax in Australia over the last three years.
According to the article in The Age, the miner “reduced its tax exposure by taking large, unnecessarily expensive loans from its associates overseas", its author Michael West wrote.
“At up to 9 per cent, the interest rates on these $3.4 billion in loans were double what the company would have had to pay had it simply borrowed the money from the bank.”
The piece went on to say the miner carried out profit-shifting within the company, which is a clear breach of the Income Tax Assessment Act.
'”The truth is that Glencore Coal Investments Australia's operations in Australia are, because of the Group's business model, branch operations of the Swiss-domiciled parent entity, which uses the now dormant legal shell of an Australian body corporate in an attempt to hide the reality of its branch business in Australia,”an independent report carried out as part of the article’s investigation stated.
Following this Glencore refuted the claims, telling Australian Mining “the claims we have paid no income tax over the last three years is preposterous”.
“Glencore complies with all tax rules and regulations in Australia and in each jurisdiction where we operate,” the miner said in an official statement.
However the claims remained in the market, with concerns over the miner’s actual tax payments growing.
Now Fairfax has retracted its article’s claims.
In an amendment to the article, it stated: “Reports, including this one, say that Glencore had not paid income tax for the past three years. This is incorrect. The company has stated that it paid more than $400 million in corporate income tax in Australia over this period. Fairfax Media also wishes to clarify that the $15 billion presented as taxable "income" in these stories relate to revenue and not taxable profits.