Symantec Owes $1 Billion in Taxes

["Richard M. Smith" <rms () bsf-llc com>]

http://online.wsj.com/article/SB114531152261428008.html?mod=todays_us_page_o
ne
 

Symantec Owes $1 Billion in Taxes

By ANTONIE BOESSENKOOL
April 18, 2006; Page A16


Symantec <http://online.wsj.com/quotes/main.html?type=djn&symbol=SYMC>
Corp. said late Monday it has received notice from the Internal Revenue
Service claiming that it owes $1 billion in additional taxes, mostly related
to Veritas Software Corp., the storage-software firm it acquired for more
than $10 billion last July.

In a regulatory filing, Symantec said that it received a notice of
deficiency from the IRS claiming it owes $900 million in back taxes, as well
as interest and penalties, related to Veritas for the 2000 and 2001 tax
years. The tax agency made the claim based on an audit of Veritas.

Symantec, maker of the Norton brand of antivirus and security software, also
disclosed that it received a notice from the tax authorities of proposed
adjustments of $100 million to the Cupertino, Calif., company's 2003 and
2004 tax years, excluding interest and penalties, following an unrelated
audit.

Symantec, which plans to contest the claims, said that it "strongly believes
the IRS positions with regard to these matters are inconsistent with
applicable tax laws and existing Treasury regulations." It views its
previously reported income tax provision for the years in question as
"appropriate," the company added.

Shares of Symantec fell nearly 4% in after-hours trading following the news
to change hands at $15.79. Shares closed the regular session off 3% at
$16.39.

...

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