PHARMACEUTICAL COMPANY AstraZeneca will pay $1.1bn to resolve an ongoing transfer pricing dispute over its US business.
The UK-Swedish based firm will pay the $1.1bn net costs to US tax authorities to cover transfer pricing arrangements over a 13-year period from 2002 to the end of 2014, it announced today. It had already announced in February that it will pay £505m to settle a dispute with HM Revenue & Customs.
“AstraZeneca had provided in its accounts for the outcome of these issues, at the heart of which are complex transfer pricing considerations that have taken many years to resolve,” the group said.
It also said that the group’s effective tax rate for 2011 is expected to be approximately six percentage points lower than the previous guidance of 27%, at around 21%.
At HMRC, Dmitri Surendran was responsible for leading the London team of the offshore, corporate and wealthy unit of the fraud investigation service
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A total of £16bn was lost through tax fraud last year, according to estimates released by Pinsent Masons
Additional tax a result of compliance investigations by HMRC, but overall revenue falls