Astra raises guidance after settling tax row

23rd Feb 2010 10:49

Drugs giant AstraZeneca has upped its 2010 earnings forecast after settling a long running dispute with the UK tax authorities.Under the agreement, AstraZeneca will pay £505m to resolve all claims by HM Revenue & Customs (HMRC) relating to transfer pricing over a 15 year period to the end of 2010. The payment will be made by a first instalment of £350m in March 2010, and a second final instalment of £155m in March 2011.Following the resolution, AstraZeneca's tax rate this year will be about 2% lower than previously expected. The group has therefore raised its earnings per share forecast for this year from between $5.75 and $6.15 to $5.90 to $6.30.