Europe’s biggest drug manufacturer faces a row with the US tax authorities
over a $12bn (£6.9bn) tax bill.
GlaxoSmithKline is about to be hit with a new bill from the Internal Revenue
Service of $4bn, bringing the amount under dispute to a total of $12bn.
The group said yesterday it expected to receive further ‘substantial claims’
from the IRS in relation to the way it records profits at its US subsidiary.
The Times reports that the group is already facing claims from the
body of $2.7bn in unpaid tax for the period 1989-96, a $1.9bn bill for between
1997 and 2000 and interest of $3.7bn.
The IRS claims GSK avoided higher tax rates by moving US profits to the UK,
where corporation tax is lower.
The company made the announcement as it revealed strong full year results,
with profits rising 16% to £6.7bn on sales growth of 8%, up to £22bn.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states