Beaulieu of America Settles Federal Tax Charges
In addition, the Company and its owners, Carl M. Bouckaert and Mieke D. Hanssens (formerly Marie T. Bouckaert), have resolved all civil tax liability with the Internal Revenue Service by agreeing to an adjustment to taxable income for the year 2000 in the amount of $58.7 million. This adjustment will result in additional taxes and penalties to be paid to the IRS in the amount of $30.3 million. Beaulieu fully cooperated with government investigators throughout the investigation, providing full access to Company employees and documents.
As part of the plea agreement, Carl M. Bouckaert, Chief Executive Officer of Beaulieu, and Mieke D. Hanssens, Executive Vice President, have agreed to step down from those positions as officers of the Company. Mr. Bouckaert and Ms. Hanssens will continue to serve as members of the Company’s Board. Ralph J. Boe has been elected as the new CEO. Mr. Boe has been President and Chief Operating Officer of the Company for the last six years, and as the CEO, he will continue to lead the management of the Company as he does now.
In announcing the agreement, Mr. Boe said, “We are pleased to put this matter behind us. The Company had set aside the cash reserves to cover this settlement. In addition, the Company has taken steps to strengthen its tax practices and enhance its compliance program. Today’s resolution allows the Company to move forward, while maintaining its focus on providing quality products and service to all of our customers.”
Beaulieu of America, headquartered in Dalton, Georgia, is the third largest carpet manufacturer in the United States with annual sales over $1.0 billion. Beaulieu employs approximately 6,500 employees in the United States and is one of the largest manufacturers in the State of Georgia.
Related Topics:Beaulieu International Group