Reuters logo
IRS claim may force ADT to share Tyco's tax liabilities
July 2, 2013 / 1:50 PM / 4 years ago

IRS claim may force ADT to share Tyco's tax liabilities

July 2 (Reuters) - Security services provider ADT Corp said it may have to contribute to a tax bill faced by former parent Tyco International Ltd if the total amount assessed by the IRS exceeds $1.85 billion.

Tyco said on Monday it received a notice from the U.S. Internal Revenue Service stating that several of the company’s former units, including ADT, owed taxes of $883.3 million and penalties of $154.0 million for tax years from 1997 to 2000. ()

Tyco also said the IRS had disallowed interest and related deductions recognized on the U.S. income tax returns totaling about $2.86 billion related to intercompany debt transactions.

The company said four former subsidiaries would share the liabilities under tax-sharing agreements. The companies are Covidien Plc, TE Connectivity Ltd, ADT and Pentair Ltd. ()

Shares of ADT, which was spun off from Tyco in September, were little changed at $40.46 in morning trading on the New York Stock Exchange.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below