Scitex Receives Notice of Proposed Additional IRS Assessment
Press release from the issuing company
TEL AVIV, Israel, June 19 -- Scitex Corporation, a world leader in industrial inkjet digital printing solutions, today announced that it has received a notice from the U.S. Internal Revenue Service proposing to assess additional U.S. federal income taxes for the years 1992 through 1996.
As previously announced, Scitex has been in negotiations with the IRS with regard to an audit of U.S. subsidiaries for those years. In partial settlement of this audit, Scitex consented to a "partial assessment" by the IRS for $10.6 million of federal income taxes on the issues agreed upon to date. This amount excludes state income taxes and interest, which in due course will be assessed and are expected to almost double the above amount. Scitex has already made advanced payments of $21.5 million on account of this audit period.
The notice from the IRS proposes to assess an additional $29.6 million of federal income taxes. This amount exludes state income taxes and interest, which would almost double that figure. Scitex is reviewing the proposed assessment and intends to vigorously dispute the issues raised by the IRS and to appeal the proposed assessment. The outcome of the appeal cannot be predicted at this time. Due to the advance payments and existing reserves, Scitex believes that it is not necessary at this time to establish additional reserves for this proposed assessment.
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