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19 Nov 2018 | 07:22

BHP Billiton settles transfer pricing dispute with Australian tax office

BHP Billton said Monday it had reached an agreement with the Australian Taxation Office to settle a transfer pricing dispute relating to its marketing operations in Singapore.

As part of the settlement, BHP Billiton agreed to pay a total of around A$529m in additional taxes for the income years 2003 to 2018, of which the miner had already paid A$328m.

BHP also agreed to increase its stake in BHP Billiton Marketing AG, the main company conducting BHP's Singapore marketing business, from 58% to 100%.

Following the change in ownership, all profits generated by BHP in Singapore on the company's Australian assets would be fully subject to Australian tax.

The settlement fully resolved the longstanding dispute between BHP and the Australian Taxation Office from 2003 to 2018, BHP said. 'This is an important agreement and we are pleased to resolve this longstanding matter,' said Peter Beaven, BHP Chief Financial Officer. 'The A$529 million payable under the settlement is in addition to the more than A$75 billion in Australian taxes and royalties that has already been paid by BHP over that same period.' 'The settlement provides clarity for BHP and the ATO in relation to how taxes will be assessed and paid on the sale of Australian commodities. That certainty is good for business and for Australia.'

Story provided by StockMarketWire.com
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