Violation Tracker Individual Record

Company: 
Merck & Co., Inc.
Current Parent Company: 
Merck
Penalty: 
$2,300,000,000
Year: 
2007
Date: 
February 24, 2007
Offense Group: 
financial offenses
Primary Offense: 
tax violations
Violation Description: 

The IRS entered into an agreement that resolved several disputed tax issues with Merck & Co., Inc. and its subsidiaries. The agreement resulted in a payment to the government of approximately $2.3 billion in federal tax, net interest and penalties, and resolved all issues that had been in dispute between the parties for the tax years 1993-2001. Among the significant issues resolved were three issues that resulted from Merck's use of minority equity interest financing transactions.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Internal Revenue Service
Civil or Criminal Case: 
civil
HQ Country of Parent: 
USA
HQ State of Parent: 
New Jersey
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
pharmaceuticals
Specific Industry of Parent: 
pharmaceuticals
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.