BusinessCompany NewsIntel appeals against $2.4bn tax bill

Intel appeals against $2.4bn tax bill

Chip-maker embroiled in battle with IRS relating to export tax adjustment on seven-year sales period 

Intel may be forced to
pay $2.9bn of tax on export sales after a near four year- fight with the
Internal Revenue Service.

The US taxman first clamped down on the electronic chip giant in August
2003, when it announced the adjustment to the levy on Intel’s export sales, but
the company may have to make payments for a seven-year period. 

The company’s federal income tax between 1999 and 2005 would increase by
about $2.2bn plus interest if it loses its appeal against the IRS, the company
said in its annual report filed at the
Securities and Exchange
Commission
.

The IRS would also likely make a similar claim for 2006, potentially
increasing Intel’s tax due by about $200m plus interest, if it fails to have the
ruling overturned.

The corporate, which reported fourth-quarter revenues of $9.7bn, believed
that there was a ‘possibility of a material adverse impact on the results of
operations’ for the period when the matter is resolved, but added that
management does not believe the outcome will affect its financial position, cash
flow or results of operations.’

Further reading:

IRS forces space tripper to cancel
adventure

High-income earners under IRS radar

Advisers look at US plans to close tax
gap

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor