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  "documentTitle": "Elliott Management | Activist Presentation Deck | 39 slides",
  "authorId": "elliott-management",
  "authorName": "Elliott Management",
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  "presentationDate": "2017-05-01 00:00:00",
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  "pageNumber": 31,
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  "nDataPoints": 18,
  "notes": "The slide uses a comparative bar chart to imply aggressive tax planning by BHP relative to a peer.",
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      "kind": "chart",
      "text": "BHP's Aggressive Marketing Margins for Its Singapore Structure – an Attempt to Reduce the Amount of Australian Tax Paid by BHP(1)",
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      "text": "BHP is currently in dispute with the Australian Taxation Office (ATO) regarding the amount of tax which the group's Australian entities should pay in connection with their sales of Australia-sourced commodities which have been deliberately channeled through BHP's principal marketing entity in Singapore, BHP Billiton Marketing AG. This bespoke Singapore-based marketing structure by which BHP seeks to avoid tax is under heavy fire from the ATO, with BHP reportedly facing an ATO tax assessment of over A$1 billion. Our assessment is that the tax benefits and the aggressive marketing margins which BHP was seeking in using this structure are unsustainable. Rio Tinto was recently handed a significant additional ATO tax bill in connection with similar arrangements. Glencore has announced that it will voluntarily disband its version of this type of tax-avoidance structure. We ascribe no value to this structure, in contrast to management who appear to consider it to be worth c.US$300-US$500 million (analysis which we assume is unadjusted for any further potential ATO-related charges). A properly managed termination of this heavily scrutinized structure in combination with unification would end the perceived additional BHP value discount associated with shareholders' ESG concerns over the Singapore structure. It would also be in line with BHP's recent efforts to gain the trust of its various stakeholders",
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      "text": "Source: Company filings and press articles. (1) Note: Fiscal year ended December for Glencore and June for BHP",
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      "text": "The unsustainable Singapore-based marketing structure by which BHP seeks to avoid tax",
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      "kind": "title",
      "text": "BHP's US$1.3 billion Unification Costs Estimate Is Fundamentally Flawed, Misleading and Ignores the Clear Benefits of Unification (cont.)",
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