International Flavors & Fragrances Inc. (IFF) reached a €86 million settlement with the Spanish tax authorities regarding income tax deductions taken by its Spanish subsidiaries for the fiscal years 2004 through 2010.
As part of the overall settlement reached on Aug. 1, the company and the Spanish tax authorities agreed to settle all disputes and claims arising from its Spanish subsidiaries’ tax returns for the fiscal years 2004 through 2010 in exchange for an agreed-upon payment of €86 million before the year end.
In addition, the company and the Spanish tax authorities have preliminarily agreed upon the key principles to be incorporated into an agreement that will establish the tax basis for IFF's activities in Spain for 2012 and future years. IFF plans to formalize this part of agreement before the end of this year and doesn't expect a material impact on its effective tax rate for 2012.
IFF is scheduled to report its second-quarter earnings results on Wednesday, August 8.