CANBERRA: BHP Billiton says it is ready to fight for the legitimacy of its controversial Singapore marketing hub in court as the tax bill for the operation climbs above $1bn. The mining giant has received fresh tax bills for the years 2009 to 2013, on top of existing assessments covering 2003 to 2008, BHP said in an annual tax transparency report released today.
The dispute is over the price at which BHP in Australia sells its products to the Singaporean marketing hub. While the ATO contends the price is too low, leaving too much profit in the tax haven, BHP chief financial officer Peter Beaven said the company was “pretty confident” of its position.
Legal action to resolve the stoush appears likely because despite ongoing talks BHP has so far been unable to strike a deal with the ATO. Mr Beaven said the Singapore hub was a “legitimate, stand-alone business”, used by BHP to increase the price its commodities, including iron ore and copper, fetch in Asian markets, especially China.
