Pharmaceutical giant Merck & Co has paid the US taxman $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 powers are being sought by HMRC, but it is ‘failing’ to use those it already has, such as Conduct Notices, says RPC
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
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The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today