BHP Billiton PLC (BHP.AX,BLT.L,BBL,BHP) announced that it has reached an agreement with the Australian Taxation Office (ATO) to settle the transfer pricing dispute relating to its marketing operations in Singapore. As part of the settlement, BHP will pay a total of approximately A$529 million in additional taxes for the income years 2003 to 2018. BHP has already paid A$328 million of the amount.
From July 2019, BHP Group Limited will increase its ownership of BHP Billiton Marketing AG, which is the main company conducting BHP’s Singapore marketing business, from 58 percent to 100 percent. The change in ownership will result in all profits made in Singapore in relation to the Australian assets owned by BHP Group Limited being fully subject to Australian tax.
The dispute between BHP and the ATO related to the amount of Australian tax payable as a result of the sale of Australian commodities to BHP’s Singapore marketing business.
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