October 08, 2008

BHPB to defend assessment by Australian Taxation Office

The Australian Taxation Office has issued assessments and is in dispute with BHP Billiton Limited and its subsidiary company, BHP Pty Ltd in respect of the 2000 to 2006 income years. BHP Billiton maintains that the Group is entitled to the tax relief claimed.

BHP release said that “It has taken legal advice and remains confident of its position. It intends to vigorously defend the assessment. The outcome of the dispute is unlikely to be known for some time. In the meantime BHP Billiton believes that the matter is adequately provided for in the accounts.”

The dispute is in respect of capital allowances claimed by the BHP Billiton group of companies in relation to Australia’s Boodarie Iron which ceased operations in August 2005. The dispute involves primary tax of USD 336 million and interest and penalties of USD 307 million.

BHP Billiton previously announced in June 2005 that the Australian Taxation Office had issued assessments against BHP Billiton Finance Limited relating to the cost of funding the Boodarie HBI plant. That matter is currently before the Federal Court of Australia.