Medtronic Tax Bill to Rise on New Ruling in $1.4B Fight (1)

Medical device manufacturer Medtronic’s tax bill is slated to go up after the US Tax Court issued a new opinion on the taxes it owes for licensing patents and other intangible property to a Puerto Rican subsidiary in 2005 and 2006.

The Thursday ruling left the exact tax bill to be computed through further proceedings, but Judge Kathleen Kerrigan increased a royalty rate that will in turn drive up the tax bill. She raised the figure to 48.8% from the 38% she had assigned in a 2016 ruling.

The 2016 ruling had ...