IFF Reaches Settlement on Income Tax Disputes with Spain
In accordance with the overall settlement, the Company and the Spanish
tax authorities agreed to settle all disputes and claims arising from
the Company’s Spanish subsidiaries’ tax returns for the fiscal years
2004 through 2010 in exchange for an agreed-upon aggregate payment of
The settlement agreement does not address the Spanish tax authorities’
challenges to similar tax deductions taken in the 2002 and 2003 fiscal
years, which are further along in the Spanish judicial process. As a
result of the settlement, the Company will record an additional accrual
of
As mentioned earlier, as part of the overall settlement, the parties also preliminarily agreed upon the key principles to be incorporated into an agreement that will establish the tax basis regarding the future activities of IFF’s Spanish subsidiaries for 2012 and future years. The Company expects to formalize this agreement prior to the end of 2012, and believes the terms of this agreement will not have a material impact on the Company’s effective tax rate for 2012.
About
“Safe Harbor” Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release includes “forward-looking statements” under the
Federal Private Securities Litigation Reform Act of 1995, including (i)
the Company’s expectation regarding the ultimate assessment that will be
imposed by the Spanish tax authorities for the 2011 fiscal year upon the
completion of the audit of the 2011 Spanish tax return; (ii) the final
resolution of the pending legal proceedings associated with the income
tax deductions taken for the 2002-2003 fiscal year; (iii) the Company’s
ability to execute, and its expectations regarding the final terms of,
the agreement with the Spanish tax authorities for 2012 and future
years; and (iv) the after-tax impact of the related charges. These
forward-looking statements are subject to risks and uncertainties and
actual results may differ materially from those in the forward-looking
statements, including, but not limited to: (1) that the Spanish tax
authorities may impose tax assessments for the 2011 fiscal year that are
inconsistent with those agreed upon for the 2004-2010 fiscal years; (2)
the timing and terms of the final resolution of the legal proceedings
regarding the 2002-2003 fiscal years; (3) the Company’s ability to
execute the agreement for 2012 and future years with the terms and
conditions as presently contemplated prior to the end of 2012; and (4)
the accuracy of the assumptions and other factors involved in
determining accruals and after-tax charges. These forward-looking
statements are qualified in their entirety by cautionary statements and
risk factor disclosures contained in the Company’s
Source:
Investor Contact:
International Flavors & Fragrances Inc.
Shelley
Young, 212-708-7271
Director, Investor Relations