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Intel Faces $600m Bill For Unpaid Tax

Time: 17:40 EST/22:40 GMT | News Source: The Register | Posted By: Steven Chalfont

Intel may have to cough up $600 million in unpaid taxes if the US Internal Revenue Service (IRS) gets its way, the company has admitted.

The IRS claims Intel paid insufficient tax in 1999 and 2000 because the chip giant incorrectly calculated how much tax credit it was due on chips fabbed in the US but sold overseas.

Intel and the IRS differ on what constitutes as US-made chip. Is it one punched out of a US-made wafer and packaged in ceramic overseas, or does the definition specify that the chip has to be fabbed and packaged on US soil?

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