Singapore caught in centre of BHP Billiton’s alleged $1 bil tax avoidance storm

SINGAPORE (Sept 28): Singapore has found itself caught in the centre of a $1 billion tax dispute as the Australian Taxation Office alleges that BHP Billiton is making use of a marketing hub based in the city-state to avoid tax.

BHP, the world’s biggest mining company by market capitalisation, has rejected the claim by Australia’s tax authorities and said it would contest the A$1 billion ($1.04 billion) bill in court, if necessary.

The Singapore government grants BHP a 0% tax rate as part of an incentive deal for its marketing activities. With some 150 employees here, BHP’s Singapore-based marketing unit sells commodities mined in Australia to customers across Asia.

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