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back to article Tax bill could kibosh Dell-EMC deal

Dell could be landed with a $9bn tax bill for buying EMC - a deal-breaker. That’s what Dell insiders are telling the Silicon Valley publication Re/Code. At the heart of their concern is how the Internal Revenue Service will treat the tracking stock in VMware, an EMC subsidiary, that Dell plans to issue to help fund the …

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  1. Anonymous Coward
    Anonymous Coward

    Leave it to the tax man to stifle growth and innovation. Sorry wads, the lot of 'em.

    1 0 Reply
    1. Man Mountain
      Reply Icon

      Or trust the big corporate to try and dodge their tax responsibilities. You decide.

      3 1 Reply
      1. Sam Liddicott
        Reply Icon

        not

        Admitting that the tax "responsibility" consumes the benefit of the transaction isn't avoiding a tax responsibility it's avoiding a risk that has no benefit.

        0 0 Reply
  2. allthecoolshortnamesweretaken

    You'd think in a megadeal like this they'd look into implications re taxes at a very early stage.

    The Beatles - Taxman

    1 0 Reply
    1. Sam Liddicott
      Reply Icon

      apparently they did

      The story seems to suggest that they did look into the tax implications.

      The company is “confident there was no such

      threat to the deal since tax authorities would

      treat the tracking stock in line with previous

      similar transactions".

      0 0 Reply
      1. allthecoolshortnamesweretaken
        Reply Icon

        Re: apparently they did

        Seems like they didn't close enough. And regarding the sheer size of the deal 'previous similar transactions' seems like stretching things a bit.

        0 0 Reply

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