On September 25, 2009, McKesson Corporation filed a complaint against the Delaware Department of Finance in Delaware Chancery Court, challenging a $4,584,713 assessment that McKesson received as a result of a Delaware unclaimed property audit by Kelmar Associates, LLC.The central issue in the case is the Delaware auditor’s treatment of inventory mismatches/unbilled payables (also known as "GR/IR") as unclaimed property.McKesson alleges in its complaint that excess quantities of pharmaceutical products that it received from suppliers were, in fact, "free goods” furnished by the suppliers.McKesson also alleges that the GR/IR account in its general ledger does not accurately reflect liabilities that McKesson owes to suppliers because of discounts and rebates that McKesson receives from suppliers.The complaint raises a number of statutory and Constitutional arguments for why the Delaware unclaimed property assessment should be invalidated.
Legal Disclaimer: The analysis and opinions expressed herein are those of the authors and do not necessarily represent the views of the Unclaimed Property Professionals Organization (UPPO) or its officers, directors or members. Information provided in this document is for background and is not intended as legal, tax or accounting advice on compliance or reporting requirements and shouldn’t be used for such purposes. UPPO urges readers to consult with your own legal counsel, tax or accounting professional.
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