NRGI hosted a discussion on the subject of enforcing fiscal discipline in Mongolia. A consultant for NRGI presented the findings of her research, entitled “Can the proposed fiscal council help improve fiscal discipline in Mongolia?” to a diverse audience of government officials, researchers, private sector executives and citizens.
There is growing momentum to define the core objectives and principles of local level agreements in Mongolia. But the national government itself must do a better job of facilitating a national dialogue.
In Mongolia, resource companies are encouraged to use local level agreements (LLAs), and though the quality and uptake of these agreements is not consistent, the country's experience provides important lessons for any resource-rich country that seeks to improve agreement-making in communities.
In a report, Rio Tinto was accused of “illegitimately lowering” its withholding taxes paid to the government of Mongolia in relation to the Oyu Tolgoi copper mine. Rio allegedly did this by using a double tax agreement between Mongolia and the Netherlands, in addition to which it negotiated an even lower rate of withholding tax in its amended mining agreement in 2011. This piece reviews Rio’s tax arrangements.