BHP Billiton Group CEO Andrew Mackenzie said the company will not transfer its marketing hub in Singapore, where it pays lower taxes, even if the Australian government proceeds to reduce corporate taxes, Reuters reported Feb. 21.
In an interview with ABC, the CEO reiterated the strategic location of its Singapore office, given that a majority of its customers are in Asia. This was in response to reports that the Australian government is looking to cut the company tax rate to 25% from 30% to improve the investment climate in the country.
Mackenzie said a lower tax rate in Australia will not make BHP move its marketing hub but will open the mining giant to more investments in the country.
In 2015, BHP's Singapore marketing office was questioned by Australia's tax office, which claimed the company was minimizing tax payments by using the hub to sell mostly Australian products.