November 19, 2018 / 6:43 AM / a month ago

BHP to pay $390 million to Australia tax authorities to help settle dispute over Singapore hub

(Reuters) - BHP on Monday said it had 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$529 million ($386.43 million) in additional taxes on income for 2003 to 2018, BHP said in a statement.

The Melbourne-based miner has already paid A$328 million 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 AG, which is the main company conducting the miner’s Singapore marketing business, to 100 percent from 58 percent.

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 resolves the longstanding dispute ... with no admission of tax avoidance by BHP, and provides certainty in relation to the future taxation treatment,” BHP said.

($1 = 1.3689 Australian dollars)

Reporting by Aditya Soni in Bengaluru; Editing by Christian Schmollinger

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