A Singapore Sling is a tax avoidance scheme in which a large multinational company sells products to a subsidiary owned by them in a jurisdiction with lower tax rates, which acts as a 'marketing hub'. The subsidiary then sells the product to end users, marking up its value and attributing the mark-up to various marketing activities undertaken by the subsidiary. The parent company retains a higher profit margin due to the lower tax rate. Singapore is a popular location of such subsidiaries, given its low tax rates and its willingness to grant large multinationals 'sweetheart deals' – an extremely low tax rate in exchange for locating the multinational's marketing activities in Singapore.[1][2]

Since at least 2015, it has been under investigation as an abusive practice in Australia.[3][4]

See also

References

  1. ↑ Tax man targets BHP Billiton and Rio Tinto's 'Singapore sling'
  2. ↑ BHP Billiton reveals minuscule Singapore tax bill as ATO chases it for $500m
  3. ↑ Aston, Heath (27 April 2015). "BHP Billiton reveals minuscule Singapore tax bill as ATO chases it for $500m". The Sydney Morning Herald. Retrieved 13 September 2023.
  4. ↑ "Shell facing accusations of minimising tax through 'Singapore Sling'". ABC listen. 11 August 2022. Retrieved 13 September 2023.
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