Yahoo may have to pay taxes on US$23b Alibaba spinoff

Bengaluru

YAHOO Inc may have to pay taxes on the US$23 billion it hopes to get from the planned spinoff of its stake in Alibaba Group Holdings, threatening a key element of Chief Executive Officer Marissa Mayer's turnaround strategy.

Yahoo said on Tuesday the US Internal Revenue Service (IRS) had denied the company's request for a private letter ruling on whether the spinoff of its stake in the Chinese e-commerce giant would be considered tax free.