Reuters reported on Thursday that Tyco International faces fresh controversy, as it is accused of diverting millions of dollars worth of rebate checks to offshore subsidiaries in an attempt to evade US taxes.
The 328 page securities fraud complaint was submitted to the US District Court in New Hampshire late last month, by lawyers representing a pension fund crippled by the collapse of the company’s stock last year, according to Reuters.
‘One witness claims…that Tyco’s director of global transportation instructed his company to send refund checks for volume discounts to a Tyco affiliate in the Bahamas called World Services Inc, according to the lawsuit,’ the Reuters report revealed, continuing:
‘The witness also said that even though his company provided transportation services for only a small fraction of Tyco’s overall business, his company paid millions of dollars of rebates to non-US Tyco entities.’
Tyco’s current management refused to comment on the complaint, the news service announced on Thursday.
By Leroy Baker, Tax-News.com
