BHP Billiton Says Continue To Defend Singapore Tax Position

(RTTNews) - Anglo-Australian mining giant BHP Billiton plc's (BHP.AX, BLT.L, BBL, BHP) Chief Financial Officer Peter Beaven said that the company is continuing to negotiate with the Australian Tax Office over a higher A$1.02 billion bill for pricing of sales of commodities, including iron ore, to its Singapore marketing unit.

The Australian Taxation Office has issued BHP with an assessment of additional charges liable on sales of commodities from Australia from fiscal 2003-to-2013 to its Singapore marketing unit, the company said in its annual payments to government report. The marketing unit re-sells both BHP and third party material to customers at higher prices, and BHP disputes the ruling, it said.

"BHP Billiton does not agree with the ATO's position. Consequently, we have objected to all of the amended assessments and intend to continue to defend our position, including by initiating court action if necessary," the company said.

BHP Billiton released its Economic contribution and payments to governments Report which shows the Company's total economic contribution globally in the 2016 financial year was US$26.7 billion. This includes US$3.7 billion globally in taxes, royalties and other payments to governments.

Releasing the report today, Peter Beaven said the Company's adjusted effective tax rate in the 2016 financial year was 35.8 per cent, demonstrating BHP Billiton pays its fair share of tax. When royalties are included, the rate is more than 58 per cent.

"The Company's adjusted effective tax rate averaged 31.9 per cent over the past decade, and 39.8 per cent when royalties are included," Mr Beaven said.

"Over the last decade, our average effective tax rate was higher than the 30 per cent company rate in Australia and the average OECD rate of 25 per cent."

In the last decade, BHP Billiton has paid about US$85 billion globally in taxes, royalties and other payments to governments, including US$58 billion or A$65 billion in Australia.