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AstraZeneca to Pay $1 Billion+ to Resolve U.S. Tax Dispute

AstraZeneca to Pay $1 Billion+ to Resolve U.S. Tax Dispute

From Benzinga Lightning Feed (March 28, 2011)

AstraZeneca has agreed to pay more than $1 billion to settle an ongoing dispute over its U.S. tax liabilities, according to the Financial Times.

The drug maker said Monday that it would pay $1.1 billion to resolve disagreements over transfer pricing and other valuation issues in the period between 2000 and 2010.

Shares of AstraZeneca (NYSE: AZN) closed at $46.14 Friday. In the pre-market shares are up to $46.39, or 0.54%.

According to the FT, "The case involves the complex system of transfer pricing, an inter-company tax accounting process that allows the transfer of intangible property ?? such as patents, trademarks and licenses ?? to subsidiaries, which are often in offshore, lower-tax countries."

AstraZeneca paid £505 million to U.K. tax authorities last year to resolve similar disputes.

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Posted: March 2011