Boston Scientific Corp. Will Gladly Spend ‘Several Years’ Taking Issue with the IRS’s Notion That They Owe $525 Million
It’s not that they don’t have the money; it’s the principle of the matter:
The Natick, Mass., medical-device company, which purchased Guidant in 2006, said it received a “notice of deficiency” from the IRS on Dec. 17 relating to the 2001 through 2003 tax years for Guidant and subsidiary businesses. “The incremental tax liability asserted by the IRS with regard to the Guidant claim is $525.1 million plus interest,” Boston Scientific said in a filing with the Securities and Exchange Commission.
Besides, the issue is related to transfer pricing which isn’t exactly cut and dry, so the company figured they’ll explore the differences they have. Besides there’s no rush to pay up:
The company said the main issue under dispute is transfer pricing linked to technology license agreements between certain domestic and foreign Guidant subsidiaries.
“We do not agree with the transfer pricing methodologies applied by the IRS or its resulting assessment,” the company said.
It noted that no payments on this assessment are required until the dispute is definitively resolved, which could take “several years” based on experiences of other companies.
Boston Scientific Says IRS Seeks $525.1 Million in Taxes [WSJ]