Roche's German unit to pay hundreds of millions of euro in back taxes - report |
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Thu, 31 May 2007 09:24
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FRANKFURT (Thomson Financial) - Roche Holdings AG's German unit Roche Diagnostics GmbH agreed to pay a sum in the hundreds of millions of euro in back taxes to end a two-year investigation by public prosecutors, Frankfurter Allgemeine Zeitung reported, citing unidentified people familiar with the matter.'We do not comment on the amount of back taxes to be paid,' the newspaper cited a spokeswoman for Roche as saying.The company has made provisions for the payment, she told the newspaper.The Mannheim public prosecutors' office on Tuesday said it stopped proceedings against managers of Roche Diagnostics for tax evasion after the company agreed to pay back taxes.According to Frankfurter Allgemeine Zeitung, the company also agreed to pay a 600,000 eur fine.According to the prosecutors' office, Roche is suspected of having evaded tax payments between 1998 and 2000 by supplying units in Switzerland with products at a low price, which were then sent on to units in other countries at a 'clearly higher' price.The profit on the transaction was then taxed in Switzerland at a lower rate than would have been incurred in Germany.'Due to the great complexity and the foreign components, the proceedings likely would have lasted several more years to reach a final conclusion,' the prosecutors' office said in a statement.maria.sheahan@thomson.commas/icCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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