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Symantec Hit With Big Tax Bills

April 18, 2006|From Bloomberg News

Symantec Corp., the world's largest maker of antivirus software, said the Internal Revenue Service was seeking about $1 billion in additional taxes, most of it related to the recently acquired Veritas Software Corp.

The IRS is seeking $900 million in extra taxes from Veritas for 2000 and 2001, excluding penalties and interest, Symantec said in a filing Monday with the Securities and Exchange Commission. The IRS also is seeking $100 million for Symantec's 2003 and 2004 tax years.

Symantec plans to fight both claims.

It bought Veritas, a maker of data-storage software, on July 1. The IRS claims relate to products shipped to foreign units, said spokeswoman Genevieve Haldeman. If the Veritas claim is upheld, Symantec will add amounts owed prior to July 1 to the $10.2 billion it paid in the deal. Other sums will be treated as expenses, the filing said.

"We believe the taxes we paid were appropriate at the time they were due, and we will file a petition," Haldeman said.

Shares of Cupertino, Calif.-based Symantec fell to $15.79 in extended trading after the filing. They lost 51 cents to $16.39 during regular trading.

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