Feds go after Merck

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MONTREAL (CP) -- Revenue Canada is seeking $2 billion from pharmaceutical giant Merck Frosst in unpaid taxes, a newspaper report suggests.

Sources said that the federal department sent a notice to the company the first week of October. It is seeking taxes on a portion of the global profits from its popular drug Singulair.

The asthma treatment was developed in Montreal. But Merck transferred a part of its profits from the drug to Barbados.

Merck Frosst is one of the most important pharmaceutical companies in Canada. It employs 1,600 workers, including 1,100 in Montreal.