A tax battle has erupted between GlaxoSmithKline and the US Internal Revenue
Service over how certain inter-company financing arrangements at the
pharmaceutical business should be treated.
The IRS claim for tax an interest at the end of 2007 was sitting at $680m
(£348.9m). The claim from the US tax authorities relates to the period from 2001
GSK said it would ‘vigorously contest’ the IRS claim.
‘GSK believes, supported by external professional advice, that this claim has
no merit and that no adjustment is warranted,’ the company said in its final
results announced yesterday.
The company continues to be in dispute with HM Revenue & Customs too,
over transfer pricing and Controlled Foreign Companies tax issues ranging from
1994 until now.
The firm said HMRC had yet to formalise its claims. GSK said it hoped to
resolve the issues through discussion, but warned that there continued ‘to be a
wide difference between the Group and HMRC positions’ that may need to be
settled by litigation.
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
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
Government's estimate of a £400m admin saving from Making Tax Digital is way off - and is instead a huge cost burden, warns Lamont Pridmore chief executive Graham Lamont
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year