TaxCorporate TaxUK deal nets Tyco £700m tax bill

UK deal nets Tyco £700m tax bill

US conglomerate Tyco International will have to pay a massive bill in backdated taxes, following the uncovering of fresh accounting problems at a UK subsidiary.

Link: Ex-Tyco CFO to face tax evasion charges

The bill in after tax charges is expected to be $1.1bn (£690m) following an SEC investigation of Tyco’s acquisition of security alarms business ADT in 1997, according to reports.

Tyco has been under investigation since October 2002 after disclosing $2bn in accounting errors, and the tax charges are reported to relate to the manner in which Tyco amortised the assets of ADT.

The company has since introduced more conservative accounting methods.

ADT was owned by former Tory party treasurer Lord Ashcroft before it was sold to Tyco for $7bn.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

2m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

4m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

5m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

8m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter