It is understood BHP is developing a report that follows a similar form to Rio's, and that BHP's corporate affairs team has been trying to settle on how best to announce the plans. BHP's move would likely put pressure on other global mining companies to follow suit – including Glencore. A taxes-paid report fits with BHP chief Andrew Mackenzie's push for greater transparency and will likely make clear just exactly how much the Big Australian contributes country-by-country. BHP paid $US6.46 billion ($8.26 billion) in tax in 2013-2014 and $US8.57 billion in 2012-13. BHP would not comment specifically on whether a taxes-paid report was in the works but told Fairfax Media on Wednesday that "we take our tax and transparency obligations very seriously". "Consistent with our commitment to transparency, we plan to continue to review the scope of our transparency reporting to maintain our proactive approach," a BHP spokesperson said.

"BHP Billiton has been ranked the most transparent mining company and fourth overall in the world in the recent Transparency in Corporate Reporting: Assessing the World's Largest Companies report." Detailed taxes-paid reports cost millions to get up and running – including having to report a far lower materiality than what the company is used to – which could explain why BHP has not yet adopted the process. News of BHP's plans comes amid an Australian Senate enquiry into corporate tax avoidance, triggered by a ­public backlash against alleged tax minimisation by multi-nationals. We plan to continue to review the scope of our transparency reporting to maintain our proactive approach. BHP spokesperson BHP is not the target of the discontent or the enquiry – big tech companies such as the great non-tax payer Apple and Google are the companies on the nose – but there are pockets of the Australian political scene that continue to argue banks and mining companies do not pay enough tax.

A taxes-paid report would provide BHP with greater pushback on any accusations it does not pay its way. Leadership in public accountability over tax could add credibility to lobbying by BHP on new tax laws in the offing, as the industry prepares for an expected run of tax transparency laws in Australia, the United States and Europe. The EU and the US have passed laws to facilitate greater exchange of tax information between tax authorities in different countries. Rio has said the multitude of new legislation could send compliance costs soaring by tens of millions of dollars. BHP's move to increase transparency would also likely bring the miner in line with the Extractive Industries Transparency Initiative, which compels participants to disclose all payments to governments. Pressure has been growing on the mining industry to be more transparent and there has been a big focus in recent months on the opaque state of Glencore's tax affairs.

Rio has issued a taxes paid report each year since 2010, with its 2014 report due out next month, including country-by-country information not just on corporate income tax but also on royalties and payroll taxes of employees. It shows what tax and where it pays it on either a country or a legal entity basis – including every tax paid over $1 million to regional governments or local councils. It also shows the taxes and net earnings of business units and other group tax information. The report was inspired by the Rudd government's resource super profit tax and Rio's taxation chief Ross Lyons has said "tax transparency will either come through mandatory requirements or it will be voluntary, but it's coming". In 2013, Rio paid $US7.5 billion of taxes – $US5.7 billion of which was paid to the Australian government. That figure does not include tax paid on behalf of employees, which came to $US1.9 billion globally.

The OECD is considering how best to try to improve tax transparency and combat "base erosion" and "profit shifting" – a move backed by the G20 – and is proposing country-by-country reporting. But achieving it will be incredibly difficult.