Most of the additional taxes, or about $900m, relate to Symantec’s $10.25bn acquisition of data storage company Veritas Software Corp last July.
Cupertino, California-based Symantec said these additional taxes are are based on an audit by the US Internal Revenue Service of Veritas for its 2000 and 2001 tax years.
The IRS’ charges are mostly based on transfer pricing relating to a licensing agreement between Veritas and an overseas subsidiary, according to a Symantec filing with the US Securities and Exchange Commission.
Symantec said it had also received notice from the IRS of $100m in proposed adjustments to its 2003 and 2004 tax claims, based on a separate and unrelated audit.
Symantec said, in its SEC filing, that it plans to protest the IRS’ claims. The company also said it would make no payments to the IRS until the issue is completely resolved.
The IRS positions were inconsistent with applicable tax laws and existing Treasury regulations, and that its previously reported income tax provision for the years in question is appropriate, Symantec said in its filing.
