| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers N > Headlines for Nortel Networks, Inc. > News item |
Nortel to pay $1.09 million to settle Michigan Treasury tax claims
By Caroline Salls
Pittsburgh, June 5 - Nortel Networks Inc. requested court approval of a stipulation with the Michigan Department of Treasury, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.
Nortel said it filed amended returns for tax years 2001 through 2005 as a result of an amendment to its federal corporate income tax returns, stemming from a $2 billion income adjustment.
The department filed a $1.49 million claims related to the amended returns.
In addition, the department issued assessments against some current and former Nortel employees, claiming that they may be derivatively liable for a $77,974 2008 penalty and interest claim and/or the amended return claim.
In 2012, the department also issued an assessment against Nortel for additional taxes, interest and penalties in connection with 2009, 2010 and 2011 returns.
Specifically, the department issued a $1.46 million assessment for the 2009 return, a $196,478 assessment for the 2010 return and a $12,505 assessment for the 2011 return.
Nortel said it filed an adversary proceeding in June 2012 in response to the employee assessments and some of the post-bankruptcy assessments and sought an injunction against the department.
The bankruptcy court granted a preliminary injunction, pending a ruling on the adversary proceeding.
Under the proposed stipulation, Nortel will pay $1.09 million in full settlement of all of the amended return claims, post-bankruptcy assessments and employee assessments.
The company will also dismiss the adversary proceeding, and the department will release the claims against Nortel and its employees.
A hearing is scheduled for June 25.
Nortel, a Brampton, Ont.-based manufacturer and supplier of telecommunications networking equipment, filed for bankruptcy on Jan. 14, 2009. Its Chapter 11 case number is 09-10138.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.