Executive Summary

GlaxoSmithKline receives Internal Revenue Service notice of deficiency for $1.9 bil. in taxes for years 1997-2000. "GSK disagrees with this tax claim, and the company believes that it has paid all the taxes owed to the U.S. government for these years," GSK said. The company received a separate notice of deficiency in 2004 for $2.7 bil. in taxes for 1989-1996 (1"The Pink Sheet" Jan. 12, 2004, p. 40). The claims are related to allocation of taxes on profits for heritage company Glaxo Wellcome products, GSK says. The company will ask U.S. tax court to consolidate 1997-2000 claim with case pending for the 1989-1996 tax years; a provisional trial date is set for October 2006. GSK estimates interest owed on the two claims would total $3.2 bil. net of federal tax relief if IRS is successful...