HP demands £38m tax refund in wake of disastrous Autonomy takeover
HP is demanding that the UK government hand it a £38m tax rebate to cover loss4es incurred as a result of the British technology firm Autonomy.
The American firm alleges that it has uncovered accounting irregularities at the firm for 2010, the year before it purchased the firm for $11.1bn, downgrading its revenue by 54 per cent to $81.2m and operating profit by 81 per cent to $42.8m.
In consequence HP has raised a claim for £38.4m in ‘overpayment of tax’ with HM Revenue & Customs for the years 2009 and 2010.
A spokesperson for Autonomy’s founder, Mike Lynch, disputed the figures however, saying: “We note that a majority of the change in numbers is due to transfer pricing between jurisdictions, a mechanism which often reduces a company’s tax bill in the UK. We hope the UK Government will take a robust position in rebuffing HP’s attempts to deprive it of over £38 million in tax revenue.”
HP has written down the value of its investment by $8.8bn – prompting an investigation by the US Department of Justice and the Serious Fraud Office.