UK deal nets Tyco £700m tax bill

Link: Ex-Tyco CFO to face tax evasion charges

The bill in aftertax 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.

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