Feeds

Symantec inherits $1bn tax bill from Veritas

Plans to appeal

Combat fraud and increase customer satisfaction

Symantec's purchase of Veritas could end up being much pricier than first imagined if the US Internal Revenue Service (IRS) has anything to say about it. The IRS has slapped Symantec with a $900m tax bill to cover allegedly insufficient payments made by Veritas in 2000 and 2001.

Symantec received word of the problem from the IRS on March 29 and revealed the matter today in a filing with the US Securities and Exchange Commission (SEC). The $900m covers additional taxes, plus interest and penalties calculated during an audit of Veritas' books. A separate and unrelated audit of Symantec turned up a $100m incremental tax liability for the years 2003 and 2004, the company said. Symantec disagrees with the IRS findings and plans to fight both penalties.

"The company strongly believes the IRS positions with regard to these matters are inconsistent with applicable tax laws and existing Treasury regulations, and that its previously reported income tax provision for the years in question is appropriate," the company said in the SEC filing.

A couple of historical points don't really go in Veritas' favor here.

For one, Veritas had to restate its financial results from 2000 - 2003 due to accounting errors turned up during an SEC investigation. And then, there was Veritas' former CFO Kenneth Lonchar who was canned in 2002 for lying on his resume.

Not the cleanest bill of health.

Thankfully, Veritas has long specialized in data backup and recovery, so Symantec will have all the documents needed to prove its case on hand. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.