T H E M I N I N G 201 9 ANN U AL R E P O R T 23 TAX A TI O N C O M MI T TE E C ha ir J o c e l i n Pa r a d is Vic e Pre si d e n t T a x Rio T i n t o C a n a d a T h e T a xa t i o n Co m m i t t ee m o n i t o r s fi n a n ce r el a t ed i ss u es o f n a t i o n a l i m p o r t a n ce a d v o ca t es fo r t a x ch a n g es t o en h a n ce i n d u st r y co m p et i t i v en es s a n d ser v es a s a u sefu l n et wo r k fo r m em b er s t o exch a n g e i n fo r m a t i o n o n t a x a n d fi sca l i ss u es O v er t h e c o u rse of 2 0 1 9 M A C s T axat i o n C o m m i t t ee fo c u sed on a n u m b er of i n i t i at i v es i n c l u d i n g s p earh ead i n g an ad v o c ac y c am p ai g n in sup p o rt of ex p an d i n g p refere n t i a l t ax t reat m ent fo r c l ean energ y t ec h n o l o g y to i n c l u d e m i n i n g equ i p m ent T h e T axat i o n c o m m i t t ee al so fo c u sed i t s effo rt s on e n g ag i n g wi t h Fi n an c e C an ad a to ad v an c e i n d u st ry p erspec t i v e an d rec o m m end at i o n s on p ro p o sed O E C D d i g i t al t axat i o n refo rm s an d ad v an c i n g a t ax d edu c t i b i l i t y i ssu e wi t h Fi n an c e C an ad a an d t h e C an ad a Rev enu e A g enc y F e d e r a l B u d g e t E n g a g e m e n t Fi n an c e M i n i st er Bi l l M o rn eau t ab l ed t h e L i b eral g o v er n m ent s fo u rt h Bu d g et on M arc h 19 th 2 0 1 9 Bu d g et 2019 was p o si t i v e fo r C an ad a s m i n i n g sec t o r p ro p o si n g p ro g ram m at i c an d p o l i c y sup p o rt to b o l st er ski l l s t rai n i n g an d redu c e t h e rem o t eness of C an ad a s A rc t i c fo r b o t h c o m m u n i t i es an d i n d u st ry M A C h ad ac t i v el y p art i c i p at ed in c o n sul t at i o n s wi t h t h e federal g o v ernm ent on t h e b u d g et an d t h e rev i ew of federal t ax ex p end i t u res t h ro u g h M A C s p re b u d g et sub m i ssi o n en g ag e m ent wi t h m i n es m i n i st ers an d g o v ern m ent o ffi c i al s an d o t h er ac t i v i t i e s Bu d g et 2 0 1 9 s fo c u s on C an ad a s N o rt h ex em p l i f i ed t h ro u g h t h e c o m m i t m ent of o v er 7 0 0 m i l l i o n o v er t h e n ex t 10 y ears in n ew an d fo c u sed fu n d i n g wi l l sup p o rt A rc t i c c o m m u n i t i es an d i n d u st ry g ro wt h T h ese m easures are refl ec t i v e of p ri o ri t i es t h at M A C d ev e l o p ed an d ad v an c ed in t h e c o n sul t at i o n fo r Bu d g et 2019 whi c h b eg an in J u n e 2 0 1 8 M A C p art i c i p at ed in t h i s p ro c ess t h ro u g h a fo rm al p re b u d g et sub m i ssi o n an d al so ap p eared b efo re t h e H o u se of C o m m o n s Fi n an c e C o m m i t t ee as p art of i t s c o n sul t at i o n an d m u l t i p l e m ee t i n g s wi t h key d ec i si o n m akers at t h e p o l i t i c al an d seni o r o ffi c i al s l ev el s al so t o o k p l ac e T ax Ded u c ti b i l i ty Si n c e 2016 M A C h as eng ag ed wi t h t h e federal g o v ern m ent on a t ax d edu c t i b i l i t y i ssue t h at as st ru c t u red p rese n t ed c o n si d erab l e c h al l eng es to m i n i n g c o m p an i es t h at we re requ i red to p ay ad d i t i o n al m i n i n g t ax ret ro ac t i v el y fo r t h e p rev i o u s t ax y ear M A C s e n g ag em ent s wi t h Fi n an c e C an ad a an d t h e C an ad a Rev enu e A g enc y resul t ed in t h e d ev el o p m ent of reg u l at o ry am end m ent s to ad d ress t h e i ssue D espi t e t h e d el ay M A C re m ai n s c o n fi d ent t h e m easures wi l l be i m p l e m ent ed in a sat i sfac t o ry way OE C D Devel o p m e n ts and E n g a g m e n t I n spr i n g 2 0 1 9 M A C m et wi t h Fi n an c e C an ad a t o d i sc u ss rec ent d ev el o p m ent s o n an ev o l v i n g O E C D t ax p ro p o sal T h e O E C D h as d ev el o p ed an d i s ad v an c i n g a t ax p ro p o sal t h a t wou l d p ro v i d e a t axi n g ri g h t t o i m p o rt i n g ju r i sdi c t i o n s o n t h e g o o d s an d se rv i c es t h ey c o n sume T h e rat i o n al e o ffered fo r t h i s p ro p o sal i s t h at t h e m arket s i n t h ese ju ri sdi c t i o n s h av e a v al u e t h e m arket i n g i n t an g i b l e t h at i s c u rren t l y u n d erv al u ed an d wi t h o u t whi c h i n t erna t i o n al t ran sac t i o n s c o u l d n o t o c c u r P ri n c i p al c o n c er n s fro m t h e m i n i n g i n d u st ry are o v er d o u b l e t axat i o n w h ere C an ad a fo r ex a m p l e i s u n l i ke l y t o redu c e c u rren t t ax p ayabl e o n m i n i n g c o m p an i es d espi t e t h e t ax ri g h t fo r t h ese sam e p ro fi t s b ei n g m ad e el i g i b l e fo r c l ai m b y i m p o rt i n g ju ri sd i c t i o n s an d so c i al l i c ense fo r i n t erna t i o n al o p erat o rs