Gilat Satellite Networks Ltd. reached a settlement with the government of Israel covering six years of tax assessments against the company, Gilat announced May 30.

Under the settlement, Gilat agreed to pay $6 million to cover its tax assessment from 1998 through 2003. The satellite service provider received initial tax assessments of $45 million as well as $7 million in penalties covering 1998 through 2001. Earlier this year, the audit was extended to include tax assessments for 2002 and 2003.

Gilat previously had set aside $5.75 million to cover the tax assessment and the company should record a $225,000 charge in the second quarter 2005 to cover the remainder of the settlement.