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BHP to pay A$529m to Australia tax authorities to help settle dispute over Singapore hub
[BENGALURU] BHP on Monday said it had signed an agreement with Australia's tax authorties to settle a long-running dispute over the global miner's operations in Singapore.
As part of the deal, the world's largest miner will pay a total of about A$529 million (s$531.2 million) in additional taxes on income for 2003 to 2018, BHP said in a statement.
The Melbourne-based miner has already paid A$328 million of that.
The dispute was regarding the amount of Australian tax payable from sales of BHP's Australian commodities to its Singapore marketing business.
"This is an important agreement and we are pleased to resolve this long-standing matter," BHP CFO Peter Beaven said.
Additionally, BHP will raise its stake in BHP Billiton Marketing AG, which is the main company conducting the miner's Singapore marketing business, to 100 per cent from 58 per cent.
The change in ownership will make all profits made in Singapore from Australian assets owned by BHP fully subject to Australian tax, the miner added.
"(The deal) fully resolves the long-standing dispute... with no admission of tax avoidance by BHP, and provides certainty in relation to the future taxation treatment," BHP said.