BHP pays US $ 529m to Australian tax authorities to help resolve disputes over Singapore's Energy & Commodities Center

Monday, November 19, 2018 – 15:56

[BENGALURU] BHP announced on Monday that it had signed an agreement with the Australian tax authorities to resolve the long-standing dispute over the activities of the world's miners in Singapore.

As part of the deal, the world's largest miner will pay around $ 529 million (US $ 531.2 million) in supplementary income taxes between 2003 and 2018, BHP announced.

Melbourne has already paid EUR 328 million.

The dispute was about the amount of Australian tax due from BHP Australian sales in Singapore's marketing business.

"This is an important agreement, and we are pleased to resolve this long-standing issue," said BHP CFO Peter Beaven.

In addition, BHP will increase its stake in BHP Billiton Marketing AG, the leading Singapore mining company, up to 100 percent from 58 percent.

Changes in ownership will allow all profits in Singapore to be obtained from Australian assets owned by BHP, fully respecting the Australian tax, added to the miner.

"(The deal) is completely solved by a long-lasting dispute … BHP has not made tax evasion and provides clarity regarding future tax treatment," BHP said.

REUTERS