Data General's crucial computer pact with U.S. is facing scrutiny by panel

Article Abstract:

A subcommittee for the US Congress House Committee on the Interior investigates a $127 million federal computer contract with Data General Corp. Alleged improprieties in the bidding process including a proposal for Data General to a pay $1 million to a competitor if the other firm stopped pursuing the contract. Data General acknowledges making the offer but would not confirm the amount of the payment. Analysts consider the federal contract crucial to Data General's future since it is an endorsement of the company's new line of workstations and will give the computer maker an advantage in future federal contracts. Data General hopes to return to profitability in 1991 after suffering losses and falling sales for five years.

Public contracts, Government contracts, Data General, Competition, Computer Industry, DGN, United States. Congress. House. Committee on Interior and Insular Affairs

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IBM probed over payments of U.K. taxes

Article Abstract:

The UK's Inland Revenue agency is investigating charges that IBM's UK business may have avoided taxes by inflating royalties paid to its US parent. IR is looking at company records from 1991 to 1996. IBM reported losses on US tax returns filed between 1991 and 1993, and thus paid no US taxes then. If the allegations of inflating royalties from 8% to 12%, and avoiding UK taxes on $500 mil, prove true, the IBM's overall bottom line would show a decrease (increased loss) for the period in question. A former UK IBM employee, Gerard M. Churchhouse is the source of the allegations.

United Kingdom, Electronic Computer Manufacturing, Computers & Auxiliary Equip, Taxes, Company legal issue, Cases, International Business Machines Corp., IBM, Tax evasion

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