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BHP to pay $386 million to settle tax dispute over Singapore marketing unit

FILE PHOTO: A promotional sign adorns a stage at a BHP Billiton function in Sydney, Australia, August 20, 2013. REUTERS/David Gray/File Photo

(Reuters) - Global miner BHP said on Monday it signed an agreement with the Australian Taxation Office (ATO) to settle the transfer pricing dispute regarding its marketing operations in Singapore.

As part of the deal, the world’s largest miner will pay a total of about A$529 million ($386.43 million) in additional taxes on income for 2003 to 2018, BHP said in a statement.

The dispute was regarding the amount of Australian tax payable from sale of BHP’s Australian commodities to BHP’s Singapore marketing business.

Reporting by Aditya Soni in Bengaluru; Editing by Christian Schmollinger