Glencore Plc. has revealed it is in a $680 million dispute with the U.K. tax office over audits for the 2008-2017 tax years.
The mining giant, which noted the dispute in its Jan. 20 preliminary annual report, said the audit includes tax assessments for inter-company transactions, or transfer pricing.
- The U.K. tax authority, Her Majesty’s Revenue and Customs, also assessed Glencore for diverted profits tax, a 25 percent levy imposed on profits instead of the lower corporate tax of 19 percent, when a company is deemed to have improperly avoided local U.K. tax
- HMRC also assessed the company over its permanent establishment—the tax office can contest a company’s structures if it deems they’re set up to avoid the required economic presence that would make it liable for local taxes.
- Glencore intends to appeal and “vigorously” contest the assessments
- The company hasn’t made provisions for the amount under dispute