GlaxoSmithKline to contest tax claims

One of the top five pharmaceutical firms in the world, GlaxoSmithKline PLC (GSK) said that it has received a claim from the US government of $2.7bn (€2.13bn) for taxes from the for the years 1989-1996.

If the US Internal Revenue Service is successful in its claim, GSK will have to pay interest of around $2.5 bn (€1.97bn), net of federal tax relief.

Similar tax issues remain open for 1997-2000, and the company said it is likely to receive an additional assessment for this period.

This statutory notice of deficiency is part of a long-running dispute between the company the US Internal Revenue Service.

GSK plans to contest this claim for additional taxes by filing a petition in the US Tax Court, but a trial is not expected until sometime in 2005-2006.