Fergie's Tech Blog

Symantec May Owe the IRS $1 Billion

Dan Nystedt writes on InfoWorld:

Antivirus software maker Symantec may owe the Internal Revenue Service (IRS) as much as $1 billion in back taxes and penalties, The Wall Street Journal reports.

The IRS is seeking over $757 million in back taxes from a company Symantec acquired last year, Veritas Software, as well as $303 million in penalties, the report says.

At the heart of the dispute is the way Veritas shared fees and other costs with an Irish subsidiary. The IRS argues that Veritas lowered its U.S. tax bill by crediting its U.S. business with too much of certain technology development costs, while charging the Irish subsidiary licensing fees that were too low.

posted by Fergie @ 6/29/2006 06:46:00 AM