BHP to pay about $390m in added taxes relating to Singapore unit
There is a dispute over the amount of Australian tax payable from sales of BHP’s Australian commodities to its Singapore marketing business
Bengaluru — BHP says it has signed an agreement with Australia's tax authorities 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$529m ($386.43m) in additional taxes on income for 2003 to 2018, BHP said in a statement on Monday. The Melbourne-based miner has already paid A$328m 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 longstanding matter," BHP CFO Peter Beaven said.
Additionally, BHP will raise its stake in BHP Billiton Marketing, which is the main company conducting the miner's Singapore marketing business, to 100% from 58%. 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 resol...