The U.S. Internal Revenue Service has hit Symantec with a $1 billion tax bill for allegedly under-reporting the value of intellectual property that the software vendor transferred to two Irish subsidiaries.
Symantec was notified of the issue by the IRS in late March, the company said in a regulatory filing, dated Monday.
The IRS claims that both Symantec and Veritas Software under-priced intellectual property the two companies licensed to their Irish subsidiaries, said Symantec spokeswoman Genevieve Haldeman. Both Symantec and Veritas, which was purchased by Symantec in 2005, set up the Irish subsidiaries for the purpose of doing business outside of the U.S., she said.
The IRS believes that Symantec owes about $900 million, excluding penalties and interest, in connection with the Veritas claim, which covers the 2000 and 2001 Veritas tax returns. Another $100 million is due in connection with Symantec's fiscal 2003 and
2004 reports.
Symantec does not agree with the IRS's position and plans to appeal the tax assessment, Haldeman said.
Symantec's stock (SYMC) dropped more than 4 percent following the news, trading at $15.73 in after-hours trading on Nasdaq Stock Market Inc.'s INET exchange.
This whitepaper explains the terminology and concepts behind Data Replication technologies and establishes some sizing rules through worked examples. Learn the new paradigm in disaster tolerance—protect data anywhere.
Download now »
Server virtualization is a popular option for dealing with mounting datacenter costs. Another equally promising approach is the use of an Application Delivery Controller. Citrix NetScaler provides a low-cost way for organizations to reduce their server count and accrue cost savings from a reduction in space, cooling, power and personnel.
Download now »
The emergence of WLANs has created a new breed of security threats to enterprise networks.
Included in HP ProCurve WLAN solutions is security technology that alleviates threats from WLANs through:
* Monitoring wireless activity inside and out of the enterprise
* Classifying WLAN transmissions into harmful and harmless
* Preventing transmissions that pose a security threat to the enterprise network
* Locating participating devices for physical remediation
Effectively address data protection challenges, implementing solutions that help store and protect business–critical data while cutting costs and improving efficiency and reliability.
Download now »
Sign up to receive Security Resource Alerts
This white paper provides guidance on how to develop a strategic approach to managing and monitoring logs, a key function required for compliance with many regulatory mandates and a critical defense against security threats.
Download now! »
Learn about the processes and technologies that support security information management (SIM) operations, as well as the business case for SIM. The series examines different options for implementing SIM and gives you evaluation criteria for selecting the best option for your organization.
Download now! »
Learn the strategies, actions, and capabilities that Best-in-Class organizations employ and technologies they choose to obtain superior performance against various security performance metrics. This report provides guidelines for identifying which security solutions to consume as a MSS and defines best practices for choosing and managing MSSPs.
Download now! »
Recommend This
