DHG Poaches Someone From EY and Issues a Press Release, Part I
Whoa, look at Dixon Hughes Goodman, picking off a transfer pricing executive from EY. And he’s a former KPMGer. And he used to be an auditor at the IRS. Dixon Hughes Goodman, a U.S. top 20 public accounting and advisory firm, is pleased to announce that Samit Shah has joined the firm as a Principal in the […]
Coca-Cola Can’t Beat the Feeling That Its Taxes Are Just Fine
Coca-Cola Co. is learning that the IRS side of life includes a challenge to its transfer pricing method: Coca-Cola Co. said it has been notified by the Internal Revenue Service that it owes $3.3 billion in federal income taxes, plus interest, after an audit found the company’s reported income from 2007 to 2009 should have […]
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]
In Other Words, Senator Levin, It’s Another Sh—y Deal?
“Transfer pricing is the corporate equivalent of the secret offshore accounts of individual tax dodgers.”
~ Senator Carl Levin (D-MI), in a less colorful manner.