Merck Riled In Tax Dispute With U.S. And Canada

Law360, New York (November 8, 2006, 12:00 AM EST) -- Pharmaceutical giant Merck & Co. disclosed on Tuesday that in addition to other woes, liabilities from four tax disputes in North America could cost it a total of $5.58 billion.

Tax authorities in the United States and Canada have cracked down on Merck’s practice of “transfer pricing.” Transfer pricing relates to the practice of reporting large amounts of revenue in a low-tax jurisdiction or large amounts of expenses in a high-tax jurisdiction, thus lowering taxable income.

Merck’s filing with the Securities and Exchange Commission mentions, among...
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