Merck Agrees To $2.3B Settlement With IRS

Law360, New York (February 15, 2007, 12:00 AM EST) -- Merck & Co. Inc. has agreed to pay the Internal Revenue Service $2.3 billion to settle a tax dispute that erupted over an offshore subsidiary set up by the drug maker more than a decade ago.

The settlement brings to a close the agency’s probe into Merck’s federal tax behavior between 1993 and 2001, Merck said Wednesday, noting the settlement won’t affect its 2007 earnings.

The company said in a statement that after analyzing the theoretical amount in disagreement, it was in Merck’s best interests to...
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