Cyrus Dugger

Merck in $2.3 billion tax settlement with IRS

Merck in $2.3 billion tax settlement with IRS

Merck & Co. (MRK) agreed to pay $2.3 billion to settle a U.S. tax dispute dating to 1993, but a separate disagreement with Canadian tax authorities remains unresolved.

The Whitehouse Station, N.J., drug maker said Wednesday the settlement essentially brings to a close the examination by the U.S. Internal Revenue Service of Merck’s tax returns from 1993 to 2001. Merck said the $2.3 billion represents its expected “final net cash cost” from the pact, covering federal tax, net interest after tax deductions and penalties.
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Merck still hasn’t completely gotten past its tax problems. It is in a separate tax dispute with Canadian authorities who are seeking about $1.76 billion in additional taxes and interest from Merck for years dating to 1998. (link)

Posted at 1:33 PM, Feb 16, 2007 in Permalink | Comments (0) | TrackBack (0)