Earlier this month, BHP faced the Senate Economic References Committee’s Corporate Tax Avoidance Inquiry.

In answers to the inquiry released today, BHP confirmed the Australian Tax Office had issued amended assessments comprising primary tax of $301 million, interest of $145 million and penalties of $76 million, relating to transfer pricing and controlled foreign company matter.

BHP has disputed the assessments.

The assessments for transfer pricing matter cover 2003-08, while the controlled foreign company matter assessments cover 2006-10.

The ATO is conducting an ongoing audit for the following years.

BHP revealed its Singapore marketing arm earned profits of $US5.7 billion ($A7.3 billion) between 2006 and 2014 and paid $121,000 tax in Singapore and $A945 million tax in Australia.

The Singapore government offered the company tax incentives due to its contributions to the development of the country’s commodities sector.

The company said 58% of Singapore profits were subject to tax in Australia at the company rate of 30%.

BHP said its two other marketing and freight subsidiaries in Singapore had earned $US369 million in profits during the same period, paying $49 million tax.

The company has included the ATO assessment in liabilities on its balance sheet of $1.6 billion for tax and legal action.

“BHP Billiton is proud of its significant contribution to the Australian economy as the country’s largest tax payer,” the company said in a brief statement.

“With around 123,000 employees and contractors worldwide, the company makes a significant contribution to the Australian economy – last year this equated to around $27 billion including payments to suppliers, wages and employee benefits, dividends, taxes and royalties.”

In response to questions, BHP also revealed it contributed $A8.46 million to campaigns to fight the Labor government’s proposed super profits tax in 2010.