A credit is allowed for foreign income taxes paid or accrued. The credit is limited special part of Oughout.S. tax due to foreign source income. It's not refundable, but any excess credit can be carried to other years to reduce tax. In addition, Merck, another pharmaceutical company, agreed spend the IRS $2.3 billion o settle allegations of Xnxx. It purportedly shifted profits ocean. In that case, Merck transferred ownership of just two drugs (Zocor and Mevacor) with shell it formed in Bermud...