Intel may owe over US$600m in back taxes

Intel may owe over US$600m in back taxes

Intel has been notified that it may have to pay about $US600 million in back taxes, plus interest, the company has disclosed in a regulatory filing.

The chipmaker 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 US 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 had to pay the back taxes there existed "the possibility of a material adverse impact on the results of operations for the period."

Intel reported revenue of $US6.8 billion for the second quarter of 2003, compared to revenue of $US6.3 billion for the year-ago period. Net income increased 101 per cent from the second quarter of last year, to $US896 million.

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