06 April 1998
Tax allegations against Powerscreen
SUGGESTIONS that Powerscreen engaged in so-called transfer pricing to avoid tax, are reported today in the Financial Times.
Its Irish Republic subsidiary Powerscreen Ltd made remarkable profits of I£10.3 million in 1995 on I£17.7m turnover – just 9% of the parent companys total sales.
The newspaper says the remarkable levels of profit suggest Powerscreen may have overpaid the subsidiarys plant, in Kilbeggan, County Westmeath, for components, to shift profits to the lower-tax area.
No accounts appear to have been filed since the 1995 figures. The report goes on to quote 1994 and 1997 figures.
Powerscreen would not comment except to say the issue would be dealt with in KPMGs report due shortly.
- Financial Times 06/04/98 page 23