Friday, October 20, 2006

Merck - now the Canadian taxman wants $2 billion

Poor Merck.

Hot on the heels of the US IRS's $2.3 billion demand for the Bermuda Triangle/Project Ryland schmozzl comes this:

Revenue Canada is seeking $2 billion in unpaid taxes from pharmaceutical giant Merck Frosst, but Merck says the assessment is "without merit."

The Montreal newspaper La Presse reported yesterday that the federal department sent a notice to the company this month seeking taxes on a portion of the global profits from its popular drug Singulair, an asthma treatment that was developed in Montreal. The claim covers taxes for 1998 to 2004.

Merck says it transferred a part of its profits from the drug to Barbados.

The assessment is based on a tax rate of 22 per cent and includes interest and a penalty.

Source

Looks like Merck's tax advisers may have to earn their fees!

2 comments:

Anonymous said...

BREAK

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