Merck settles with IRS
Executive Summary
Merck will pay approximately $2.3 billion to the Internal Revenue Service to settle tax disputes from 1993 to 2001, the firm reports Feb. 14. The agreement covers federal tax, net interest after federal tax deductions and penalties. Merck previously estimated its liability for four investigations of the company's tax returns at $5.58 billion plus penalties (1"The Pink Sheet" Nov. 13, 2006, p. 10). The settlement adds to IRS' momentum in its effort to collect taxes that pharma companies have sheltered through offshore income shifting (2"The Pink Sheet" Aug. 14, 2006, p. 7)...