Today, we have releasedan addendumto our latest Tax and Economic Contribution Report to include country-specific data that demonstrates the enduring nature of our economic contribution to society and our commitment to the countries in which we operate.
Our aim is to be atrusted corporate leader, and more specifically, a leader in transparency. Integral to our social licence to operate is our aim to be a global leader in tax transparency, going beyond the requirements of mandatory transparency rules where we conclude that doing so delivers more relevant information for our stakeholders.
Our approach to tax is based on the three key pillars of responsibility, compliance and transparency.
Our tax strategy is aligned with Anglo American’sCode of Conduct, long-term business strategy, and Purpose to re-imagine mining to improve people’s lives. Details of our tax strategy, and how we implement it, are published here:www.ayx069.com/tax-strategy
Another way in which we demonstrate our approach is via our active endorsement of the Responsible Tax Principles set by the B Team (a not-for-profit initiative which aims to catalyse a better way of doing business, for the well being of people and the planet). The B team principles can be found athttps://bteam.org/
We are proud of our regular and positive dialogue with our stakeholders in respect of our tax approach. It provides the opportunity for all parties to have an ongoing and active discussion about issues in relation to tax and enables us to continue to build trust that we comply with not only the letter but also the spirit of the law in relation to tax.
As you will see from the report, Anglo American group companies paid $1.5 billion of corporate income taxes during 2018. We act responsibly in relation to our management of taxes. We seek to be both compliant with the laws of the countries in which we operate and ensure that we pay our fair share of tax. This is demonstrated by the fact that around 80% of the corporate income taxes paid during the period were made, as you would expect, in the jurisdictions where we have our largest established and mature mining operations (being Australia, Chile and South Africa).
The group’s underlying effective tax rate for the year ended 31 December 2018 was 31.3% reflecting the relative levels of profits arising in the Group’s operating jurisdictions.