Analog Devices is battling a tax demand from Irish authorities, in a case that the US chip maker says could materially hurt its earnings.
Bloomberg reports that Irish officials have told the company its Irish tax resident unit owed about €43m relating to inter-company transfers stretching back to 2013, Analog said in filings last month.
This assessment excluded any penalties and interest, the company said.
Massachusetts-based Analog, which is an Apple supplier, said it will "vigorously defend" its position and is appealing the decision.
It warned that if it were to lose the case, "such assessment and any potential impact related to years subsequent to 2013 could have a material unfavourable impact."
Revenue said it would not comment on individual cases.
An Analog spokeswoman confirmed the case is ongoing, and said the company would not comment beyond that.
Analog is taking the case to the Irish Tax Appeals Commission, according to Bloomberg.
International tax authorities are keen to limit transactions among corporate subsidiaries, which are sometimes
seen as ways to shift income to low-tax jurisdictions.
The Irish corporate tax rate is 12.5%, while in the US President Donald Trump’s administration has cut the federal rate to 21%.
Established in Ireland in 1977, Analog employs about 1,200 people at its original and main hub in Limerick as well as its design facility in Cork.
Cork is also a base for the Irish operation of Apple, which is fighting a European Commission order to pay €13 billion in tax arrears to Ireland.
Analog specialises in data converters and chips that translate real world things - such as a button press or sound - into electronic signals.
Last month, it said its effective tax rate was below its blended US federal statutory rate of 23.4%.
"This is primarily due to lower statutory tax rates applicable to our operations in the foreign jurisdictions in
which we earn income," it said.