The Waterloo, Ont.-based software-management company settled an US$830-million claim related to its taxable income for 2010 and 2012, agreeing to pay the IRS US$290 million in U.S. federal taxes and interest. The settlement will show up as an equivalent charge on its books for the second quarter of its 2021 financial year. (CBC News)
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The Waterloo, Ont.-based software-management company settled an US$830-million claim related to its taxable income for 2010 and 2012, agreeing to pay the IRS US$290 million in U.S. federal taxes and interest. The settlement will show up as an equivalent charge on its books for the second quarter of its 2021 financial year. (CBC News)
Talking point: OpenText’s stock was relatively unchanged on news of the settlement. The dispute dates back to 2015, when the company was issued with a draft “notice of proposed adjustment” from the IRS that would have increased its U.S. federal taxes by US$280 million due to the firm’s internal restructuring in 2010. That liability ballooned to US$830 million over the years. The company said it believes the settlement is in the “best interest of all stakeholders” and provides “finality” to a longstanding dispute.
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