The report in the Sydney Morning Herald, based on independent analysis of Glencore’s accounts by an expert in “multinational financing”, claimed that the miner and commodities trader borrowed billions from “associates overseas” at high interest rates of 9%.

“As it was claiming tax breaks in Australia on these inflated interest payments, the secretive Swiss-based multinational actually increased its lending to other related parties interest free,” the newspaper reported.

“This may include its executives. Nobody from Glencore, which used to be called Xstrata, was available for comment despite repeated requests.”

The report commented further on Glencore’s “aggressive tax avoidance tactics”.

“Along with the blatant irregularities in its borrowing and lending, the study also found a hefty increase in Glencore's coal sales to related companies (up from 27 per cent to 46 per cent of total sales, with no explanation), indicative of transfer pricing – also known as profit-shifting – and an activity that appears to breach Section IVA of the Income Tax Assessment Act, the part that deals with schemes designed to comply technically with the law but whose ‘dominant purpose’ is really to avoid tax,” the newspaper commented.

An increase in “transfer pricing activity” was also raised as what could explain differences in the revenues disclosed in Australia versus Glencore’s consolidated accounts.

The source behind the analysis chose to remain anonymous, but was reportedly independent of Glencore and its competitors plus “concerned at the rampant levels of tax evasion and tax avoidance by multinationals operating in Australia”

A Glencore spokesman told International Coal News the article contained significant inaccuracies which it was reviewing.

“Glencore complies with all tax rules and regulations in Australia and in each jurisdiction where we operate,” the company stated.

“The amount of tax our company pays is driven by the taxation legislation put in place by local, state and federal governments and is a matter of public policy. Like all of Australia’s top 100 companies, Glencore has open and regular meetings with the Australian Taxation Office.”

Glencore also said its measure of economic contribution to Australia was not just about taxes or royalties.

“However, for the record, we have paid more than $8 billion in royalties and taxes in this country over the last seven years.”

The miner further said the article utterly failed to understand the nature of resource and commodity investments and the cyclical nature of the business.

“Our contribution is measured over decades with investments that serve communities for a generation through job creation and support for local businesses,” Glencore said.

“With every new investment, we take on significant financial risk in addition to the highly volatile nature of resource commodities’ global cycles.

“In the past five years, Glencore’s coal business has invested heavily into sustaining, expanding and building new coal mines in Australia. This additional $8 billion investment has created thousands of jobs and will serve Australia for decades.”

Glencore ended its response with a values-themed paragraph.

“We believe that we can make a major contribution to societies wherever we work, bringing investment, creating jobs and opportunities through running sustainable operations which make a positive difference for decades if not generations.”

It’s not yet clear whether Glencore will pursue any legal action over the story.