Total Tax Contribution

This study analyses the total taxes of 14 of the world’s largest mining companies, focusing on their largest operations in a variety of countries, using 2007 data. To our knowledge, it is the first study of income and non-income taxes ever prepared by anyone for the mining industry on a global basis.

The Total Tax Contribution theory goes beyond income taxes to collect data on all taxes, as well as compliance costs, to more properly calculate the entire tax burden of an enterprise. The mining industry, perhaps more than most other industries, remits large amounts of non-income taxes to various levels of government in the form of property taxes, payroll taxes, royalties, VAT/sales/use taxes, infrastructure funding and many more levies.

The income tax portion of a company’s financial results is highlighted in its financial statements, but the other government levies it accrues are not segregated in the financial statements, thus diminishing what it appears to pay to the government. This incomplete representation of the tax payments on any company, but especially those of a mining company, reduces its perceived impact on the public good.

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