Daily Tax Report: International

Diageo Takes $250 Million Hit to Settle U.K. ‘Google Tax’ Probe (1)

July 26, 2018, 12:03 PMUpdated: July 26, 2018, 5:21 PM

Diageo Plc has taken a 190 million-pound ($250 million) hit from inquiries linked to a U.K. “Google tax” investigation, marking the end of the largest publicly disclosed dispute on the controversial measure.

In its 2018 full-year results, filed July 26, Diageo said it had reached an agreement with U.K. officials that diverted profits tax won’t apply to the company. At the same time, however, Diageo has “reached resolution” with the authority on its intra-group taxes, otherwise known as transfer pricing.

“The agreement in respect of transfer pricing covers the period from 1 July 2014 to 30...

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