While I was reading a report on BHP Billiton contesting its tax bill in Australia, one sentence that caught my attention was that between 2006 and 2014, its Singapore marketing business earned profits of US$5.7 billion (S$7.6 billion), from which it paid only US$121,000 in taxes to the Republic.
The firm said in its response to an Australian Senate inquiry that it was granted a tax incentive by the Singapore Government for its contributions to our commodities sector.
The question is what benefits have such companies brought to Singapore? How much have they directly contributed to the development of the commodity sector? How many Singaporeans have they trained in the sector and who are still employed in the industry fruitfully? How many professional, executive, managerial and technician positions do Singaporeans hold in the company?
Have the authorities done “post-mortems” of such incentives given to foreign companies, and whether they achieved the intended objectives? How many tax incentives have been granted and are such grants sustainable? The relevant authorities should address these questions.
