Rubbermaid Parent Brings $124 Million Transfer Pricing Tax Suit

Newell Brands Inc., the multi-billion dollar consumer products manufacturer behind Rubbermaid, Yankee Candle and Sharpie, sued the US government to challenge its alleged $124 million tax debt.

The IRS concluded that a transaction between Newell US and Newell Rubbermaid Asia Services hadn’t been priced at arm’s length, requiring $226 million in upward adjustments to accurately reflect Newell’s 2011-2015 taxable income.

Newell sued the government in response, calling its decision arbitrary.

The Atlanta-based company defended its method for computing the arm’s length commission fees its US branch paid for sourcing services in a July 19 petition to the US Tax ...