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IN PHOTO: A promotional sign adorns a stage at a BHP Billiton function in central Sydney August 20, 2013. Australian shares edged 0.1 percent higher on Wednesday morning, as a mixed bag of earnings kept buyers in check with top miner BHP Billiton Ltd sliding after its profits undershot forecasts, though a rebound in the banking sector helped support the market. BHP dropped 2.5 percent after it missed analysts' forecast in its full-year profit late on Tuesday and said it delayed production the $14 billion Canadian potash project. Picture taken August 20, 2013. REUTERS/David Gray

Australia's biggest mining company, BHP Billiton is contesting a tax bill of $522 ($AUD639), the Australian Tax Office revealed that it owes for tax avoidance through its Singapore marketing operations.

A Senate committee that is investigating the corporate tax avoidance, released the figures on Monday. BHP was asked to send written responses to the panel after it refused to answer questions at a Senate inquiry into corporate tax avoidance.

BHP’s response to questions on notice from the Senate Economics References Committee disclosed the Australian Taxation Office (ATO) is seeking a total of $522 million in unpaid tax, interest and penalties for the period between 2003 and 2010.

The mining giant also revealed that between 2006 and 2014, its Singapore marketing operations have gained a profit of $5.7 billion, on which it paid only $121,000 in tax in Singapore. "The Singapore Government has granted BHP Billiton Marketing AG a tax incentive for its marketing activities. BHP Billiton Marketing AG was awarded this incentive for its contributions to the development of Singapore's commodities sector," the company said in its response to the Senate inquiry.

Meanwhile, BHP pointed out its 58 percent stakes in the Singapore marketing business, listed both in Australia and Britain. The company also paid tax on those earnings in Australia. "It is important to note that 58% of the profit which BHP Billiton Marketing AG earns in Singapore from the on-sale of commodities acquired from Australian entities controlled by BHP Billiton Limited is subject to tax in Australia at the company tax rate of 30%," BHP said.

Australia's biggest single taxpayer, BHP, along with its competitors Rio Tinto and Glencore Plc and technology giants like Apple and Google are also questioned by senate inquiry and the tax office for avoiding tax in the country. But Rio Tinto informed that it pays a 5 percent tax rate on its Singapore marketing wing.

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