Tyco International Ltd. still owes the Internal Revenue Service $50 million in income taxes related to capital gains that were not reported in its 1999 federal tax return.
The company’s former vice president of taxation, Raymond Scott Stevenson has been charged with filing a false corporate tax return, which underreported capital gains by $170 million. The IRS says that the income tax on the capital gains would add $50 million to Tyco’s 1999 tax bill.
According to the U.S. Attorney’s Office in Southern Florida, Raymond Stevenson was the vice president of taxation for Tyco until 2003. In 1999, he initiated a series of transactions which reduced the company’s state tax liability. However, the same transactions created $170 million in federal capital gains, but Stevenson failed to report that amount on Tyco’s federal return.
Stevenson has pleaded not guilty to the charge of tax fraud.