Intel may owe over US$600 million in back taxes
- 08 August, 2003 08:08
Intel has been notified that it may have to pay approximately US$600 million in back taxes, plus interest, the company disclosed in a regulatory filing Wednesday.
The Santa Clara, California, chip maker said that during a regular review of its tax returns for the years 1999 and 2000 the Internal Revenue Service (IRS) proposed an adjustment relating to the company's tax benefit for export sales.
Furthermore, in the filing submitted to the U.S. Securities and Exchange Commission (SEC), Intel said that the IRS may make similar claims for years subsequent to 2000 in future audits.
"The company disputes the proposed adjustments and intends to pursue this matter through applicable IRS and judicial procedures, as appropriate," Intel stated in the filing.
The company added that if it has to pay the back taxes there "exists the possibility of a material adverse impact on the results of operations for the period."
Intel reported revenue of US$6.8 billion for the second quarter of 2003, compared to revenue of $6.3 billion for the year-ago period. Net income increased 101 percent from the second quarter of last year, to $896 million.
Shares of the company (INTC) closed down 0.54 percent Wednesday at $24.14 a share.