Pharmaceutical giant pays $2.3bn to settle US tax dispute

Pharmaceutical giant pays $2.3bn to settle US tax dispute

Merck settles tax dispute with the IRS with massive payout after 14 years of deliberations

Pharmaceutical giant Merck & Co has paid the US tax man $2.3bn (£1.2bn) to
settle a tax dispute that has lasted 14 years.

The settlement is one of the biggest in US history, with GlaxoSmithKline
paying the Internal Revenue
Service
$3.4bn last year – the highest on record.

Merck’s settlement resolves around $3.5bn in tax liabilities, the company
said in a regulatory filing.

The dispute centred on a partnership transaction in 1993 and the use of
royalty and expenses claimed as deductions against the company’s tax returns
between 1994 and 2001.

Further reading:

GSK pays ‘biggest tax settlement in US history’

EU blasts Switzerland over tax breaks

British Land removes billion pound tax bill

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