International Business Machines Corp saved about $1.6 billion last month by using a corporate tax loophole that has since been closed, the Wall Street Journal reported in its online edition on Wednesday.
IBM said it had structured a $12.5 billion stock repurchase to take advantage of funds it earned overseas without making them subject to US corporate tax rates. IBM saved about $1.6 billion in the move, the Journal said, citing a person familiar with the transaction. Neither IBM nor the Internal Revenue Service (IRS) was immediately available to comment.