• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

EDS Will Settle Tax Agency Dispute

Posted on: Wednesday, 23 November 2005, 18:00 CST

By Aman Batheja, Fort Worth Star-Telegram, Texas

Nov. 23--EDS agreed to pay 71.25 million pounds, or about $121.1 million, to a British tax agency Tuesday to settle a dispute over a tax-credit system that was laced with problems.

The Plano-based company settled with HM Revenue & Customs, Britain's version of the Internal Revenue Service, after the agency dropped EDS as operator of a tax-payment processing system.

The specific terms of the settlement are confidential, but the agreement will involve an upfront payment and subsequent payments, both sides said.

The settlement will not affect EDS' prior financial guidance for the fourth quarter of 2005 or for the full 2006, the company said.

The British agency said EDS' system led to problems with handling applications for tax credits to be paid by the government.

"The Tax Credits IT problems had an adverse impact on many Tax Credits claimants," HMRC Chairman David Varney said in a statement.

Doug Hoover, EDS managing director for the United Kingdom, Ireland and Africa, said in a statement that England "remains a very important client for EDS and we are pleased that we have been able to settle this dispute without incurring the costs and uncertainties of what would have been a lengthy and complex legal case."

-----

To see more of the Fort Worth Star-Telegram, or to subscribe to the newspaper, go to http://www.dfw.com.

Copyright (c) 2005, Fort Worth Star-Telegram, Texas

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

EDS,

Source: Fort Worth Star-Telegram (Fort Worth, Texas)

More News in this Category