Finance:Singapore Sling (tax avoidance)
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
- Tax exporting
- Tax inversion
- Double Irish
- Dutch Sandwich
- Bermuda Black Hole
- K2
References
- ↑ Tax man targets BHP Billiton and Rio Tinto's 'Singapore sling'
- ↑ BHP Billiton reveals minuscule Singapore tax bill as ATO chases it for $500m
- ↑ Aston, Heath (2015-04-27). "BHP Billiton reveals minuscule Singapore tax bill as ATO chases it for $500m" (in en). https://www.smh.com.au/politics/federal/bhp-billiton-reveals-minuscule-singapore-tax-bill-as-ato-chases-it-for-500m-20150427-1muetk.html.
- ↑ "Shell facing accusations of minimising tax through 'Singapore Sling'" (in en-AU). 2022-08-11. https://www.abc.net.au/listen/programs/radionational-breakfast/shell-facing-accusations-of-minimising-tax-singapore-sling/101326442.
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