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Glaxo disagrees with the Commissioner’s proposal to increase
Glaxo’s taxable income pursuant to section 482 for the years
under examination. Since 1994, the applicants have attempted to
resolve their differences through the Advance Pricing Agreement
Program and through the Internal Revenue Service’s Office of
Appeals.
In December 1999, Glaxo formally requested relief from
double taxation for the taxable years 1989 through 1997 under the
mutual agreement procedures (or so-called competent authority
process) provided in article 25 of the Convention for the
Avoidance of Double Taxation, Dec. 31, 1975, U.S.-U.K., 31 U.S.T.
5668, 5688, as amended by Second Protocol, Apr. 25, 1980, 31
U.S.T. 5707, 5708. The applicants anticipate that the competent
authority process could be protracted.
The Commissioner has not issued a notice of deficiency to
Glaxo for the years under examination. Because of their
commitment to the competent authority process, the applicants do
not anticipate that the Commissioner will issue a notice of
deficiency to Glaxo in the near future. Assuming that the
Commissioner issues a notice of deficiency to Glaxo, the
applicants expect that the matter will proceed to trial but not
until 2005 or 2006.
The applicants seek permission to take the depositions of
Sir Paul Girolami (Mr. Girolami) and Sir David Jack (Mr. Jack),
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Last modified: May 25, 2011