Air Products has settled with Spanish tax authorities for approximately €40 million ($55 million).

According to the North American industrial gas company, the settlement was reached by mutual agreement, and no fines or penalties were assessed.

In a recent press statement, the firm stated, “The settlement resolves a dispute in which the authorities disallowed certain deductions taken by the company’s Spanish subsidiaries in fiscal years 2005 to 2011.”

“Although Air Products continues to believe that all positions were compliant with applicable laws and verified by external experts, the company decided to settle this matter now.”

Air Products added,
“It is expected that a significant portion of the settlement amount will be recorded as an increase to income tax expense in the first quarter of fiscal year 2012. This expense was not included in the company’s previously provided first quarter diluted earnings per share guidance of $1.31 to $1.39.”