Tax

Former Tyco Tax Exec Charged

Raymond Scott Stevenson pleaded not guilty to charges that he improperly reduced Tyco's state tax liability.
Stephen TaubSeptember 11, 2006

A former Tyco International tax executive has been charged with filing a false tax return after failing to report roughly $170 million in income for the conglomerate, according to the Associated Press.

Raymond Scott Stevenson pleaded not guilty to the single charge, according to the wire service.

He faces a maximum sentence of three years in prison and a $250,000 fine.

Drive Business Strategy and Growth

Drive Business Strategy and Growth

Learn how NetSuite Financial Management allows you to quickly and easily model what-if scenarios and generate reports.

In 1999, the former vice president for taxation allegedly oversaw a number of transactions aimed at reducing its state tax liability, according to the report. The transactions generated a capital gain of $170 million for Tyco, which it did not reflect on its tax return for the year, according to the AP, citing prosecutors. The transactions are alleged to have taken place during the same period that Dennis Kozlowski was Tyco’s chief executive and Mark Swartz was CFO.

Tyco spokeswoman Sheri Woodruff told the wire service that Stevenson was fired in 2003. She also said the company has been cooperating with the Internal Revenue Service and federal prosecutors in their investigations.

“We will certainly continue to do that,” Woodruff told the wire service. “We have no reason to believe at all that Tyco is the target of any investigation. We were aware that this case was pending.”

4 Powerful Communication Strategies for Your Next Board Meeting