The world's largest miner BHP says it will pay about AU$578 Million to settle its tax dispute with the Australian Taxation Office (ATO) over its marketing operations in Singapore from 2003 - 2018.

The company says it had already paid $328 Million of the amount, in response to amended tax assessments.  BHP did not admit it engaged in tax avoidance when selling its Australian commodities via its Singapore marketing business, which others have alleged might qualify as off-shoring profits.  To clarify BHP Billiton Marketing AG's tax status, the parent company will increase its ownership stake from 58 percent to 100 percent.

"The $529 Million payable under the settlement is in addition to the more than $75 Billion in Australian taxes and royalties that has already been paid by BHP over that same period," said BHP chief financial officer Peter Beaven in a statement.  "The settlement provides clarity for BHP and the ATO in relation to how taxes will be assessed and paid on the sale of Australian commodities.  That certainty is good for business and for Australia."

In a separate statement, the ATO says the end result should send a "strong signal" to other companies.

"This is a landmark and precedential development in the execution of our marketing hubs strategy, and sends a strong signal to other industry participants," said deputy commissioner Jeremy Hirschhorn.  "Given the importance of mining and natural resources to the Australian economy, it is critical that exporters of Australian commodities, whether iron ore, coal, gas or other commodities, pay the correct tax in Australia on their profits."