Following Cap Gemini's acquisition of the consultancy arm of Ernst & Young, to create Cap Gemini Ernst & Young, the consulting and information technology group could gain Euro1.6 billion ($1.37 billion) in tax savings over the next 15 years. Cap Gemini has made use of the deductibility of goodwill amortization recorded in the US. The group will regularly assess how much of the tax credit it can deduct against US profits. The group's first-half results included a net tax gain of Euro140 million from the deductibility of goodwill amortization.
November 01 2000