Israel's Teva to pay $718 million in Israeli taxes

Israel's Teva Pharmaceuticals Industries Ltd. says it has reached an agreement with the country's tax authority to pay roughly $718 million to settle a series of claims against the drug maker.

The money will settle tax assessments on "trapped profits," earnings that result from special corporate tax breaks, and pay separate back taxes.

Teva, the world's largest generic drug maker, has long been a source of pride in Israel. But the company's image has been tarnished by plans for mass layoffs, including hundreds of jobs in Israel.

The layoff plans caused uproar in Israel, where the company has enjoyed years of tax breaks and other incentives, and forced Teva's chief executive to step down last month.

Acting CEO Eyal Desheh said Monday's agreement was "beneficial" for both Teva and Israel.

© 2013 The Associated Press. All rights reserved.