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AstraZeneca PLC (AZN)

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Tuesday 23 February, 2010

AstraZeneca PLC

UK tax settlement on transfer

RNS Number : 5172H
AstraZeneca PLC
23 February 2010
 



ASTRAZENECA REACHES AGREEMENT WITH UK TAX AUTHORITIES OVER TRANSFER PRICING

 

AstraZeneca today announced that the company has settled a long-running transfer pricing issue with HM Revenue & Customs (HMRC) in the UK. Under the agreement, AstraZeneca will pay £505m to HMRC to resolve all claims made by HMRC in relation to this issue for the 15-year period from 1996 to the end of 2010. The payment will be made by a first instalment of £350m in March 2010, and a second final instalment of £155m in March 2011. As a result of this agreement, the joint referral of this issue to the UK Tax Court by AstraZeneca and HMRC, as disclosed in the 2008 Annual Report, will be withdrawn.

 

The settlement also resolves certain other outstanding UK tax matters.

 

As previously disclosed, AstraZeneca has provided in its accounts for the outcome of this issue, at the heart of which are complex transfer price considerations that have taken many years to resolve. As a consequence of the settlement of this issue and other tax matters, AstraZeneca will release part of its provision to earnings. 

 

As a result of this release, the group tax rate for 2010 will be approximately two percentage points lower than previous guidance. AstraZeneca has increased its 2010 target for core earnings per share from $5.75-$6.15 to $5.90-$6.30 per share to reflect this lower expected tax rate.

 

 

NOTES TO EDITORS:

 

About AstraZeneca

AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialisation of prescription medicines.  As a leader in gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology and infectious disease medicines, AstraZeneca generated global revenues of US $32.8 billion in 2009.  For more information please visit: www.astrazeneca.com

 

Contacts

 

Media Enquiries UK:



Neil McCrae

+44 20 7304 5045  (24 hours)


Chris Sampson

+44 20 7304 5130  (24 hours)


Sarah Lindgreen

+44 20 7304 5033  (24 hours)


Abigail Baron

+44 20 7304 5034  (24 hours)





Investor Enquiries UK:



Jonathan Hunt

+44 207 304 5087

mob: +44 7775 704032

Karl Hård

+44 207 304 5322

mob: +44 7789 654364

Clive Morris

+44 207 304 5084

mob: +44 7710 031012




Investor Enquiries US:



Ed Seage

+1 302 886 4065

mob: +1 302 373 1361

Jorgen Winroth

+1 212 579 0506

mob: +1 917 612 4043

 

 

23 February 2010

 

- ENDS -


This information is provided by RNS
The company news service from the London Stock Exchange
 
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