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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Underreporting Profits

GlaxoSmithKline agreed to pay approximately $3.4 billion to settle charges by the IRS that the company under-reported profits to avoid paying U.S. taxes. The Internal Revenue Service accused GSK of a practice called “transfer pricing,” by which a company claims most of its earnings belong in a country where taxes are low. The transactions at issue, which concerned the way GSK priced drugs for sale through its U.S. subsidiary, occurred between the years 1989 and 2005.

Misconduct Type
Tax
Enforcement Agency
Treasury – IRS
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Announcement
9/11/2006
Contractors Involved Penalty
Total
GlaxoSmithKline $3,400,000,000
Further Information Released
GSK Press Release 8/24/2007
IRS Press Release 8/24/2007

Federal Contractor Misconduct Database