Tax Justice & Extractives: 2 new reports about Peru, Mongolia & Canada
This week, two new studies linking taxation and extractive industries were published by members and allies of the Global Alliance for Tax Justice:
In Peru, as pointed out by GATJ’s Latin American member Tax Justice Network, an investigation of Convoca.pe and Latindadd "found how one of the largest mining companies operating in the country used companies based in tax havens, as well as the services of the Panamanian law firm Mossack Fonseca, to hide its ownership in the purchase of land for the construction of a megaport in the district of Chancay, north of Lima."
“The mining company Volcan, Latindadd explains, is known to be the extractive company that has committed the most environmental infractions in the country during the last decade. This record is precisely what worries the population and fishermen in the area, who fear that the company may use the port terminal for the transport of minerals and that this may cause serious damage to the local environment”.
You can download the report titled "From the Virgin Islands to the Peruvian coast: The offshore hideaway of the Chancay megapuerto" here (in Spanish).
Between Canada, Mongolia & Eruope, SOMO and Oyu Tolgoi Watch published a report showing how Rio Tinto avoids Mongolian & Canadian taxes: “The mining giant and its Canadian subsidiary Turquoise Hill Resources, avoided nearly $470 million in Canadian taxes by using mailbox companies in two tax havens, Luxembourg and the Netherlands. The publication also shows how an abusive investment agreement covering the Oyu Tolgoi copper and gold mine has resulted in a $230 million tax revenue loss for Mongolia”.
You can download the report titled “Mining Taxes: The case of Oyu Tolgoi and profitable tax avoidance by Rio Tinto in Mongolia” here (in English) and watch the video describing the case below: