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

[edit]

* Economy portal
* Companies portal
* Ireland portal
* Netherlands portal

* Tax exporting
* Tax inversion
* Double Irish
* Dutch Sandwich
* Bermuda Black Hole
* K2

## References

[edit]

1. ^ "Tax man targets big miners' 'Singapore sling'". 25 May 2015 - via www.abc.net.au.
2. ^ Aston, Heath (27 April 2015). "BHP Billiton reveals minuscule Singapore tax bill as ATO chases it for $500m". The Sydney Morning Herald.
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.