Transfer Pricing In A Global Economy

Abstract

In September 2006, the Internal Revenue Service and GlaxoSmithKline entered into an agreement to settle transfer pricing disputes covering the years 1989 to 2005. The $5.2 billion agreement, whereby Glaxo paid $3.4 billion in back taxes plus dropped a claim for a $1.8 billion tax refund, was the largest settlement in IRS history.