UK Misclassification Spat Costs Weight Watchers $37M

Law360, New York (February 17, 2010, 3:42 PM EST) -- Weight Watchers International Inc. has said it must fork over $37 million after a ruling from a U.K. court that the weight-loss giant misclassified high-level employees for tax purposes.

Weight Watchers announced in a Tuesday filing with the U.S. Securities and Exchange Commission that it had received an “adverse tax ruling” from the U.K. First Tier Tribunal, which found that the company's U.K. leaders should have been classified as employees for U.K. tax purposes.

The tribunal said Weight Watchers should have withheld tax from its leaders...
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