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 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.