Difference between revisions of "Pharma: Tax Avoidance"

From Powerbase
Jump to: navigation, search
 
(One intermediate revision by one other user not shown)
Line 1: Line 1:
 
'''Pharma: Tax Avoidance'''
 
'''Pharma: Tax Avoidance'''
  
−
A report in ''The Guardian'' shows how pharmaceutical giants [[GlaxoSmithKline]] and [[AstraZeneca]] "offshore" legal ownership of their valuable trademarks to low-tax locations.<ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] '''The Guardian'''Accessed on 3 February 2009</ref> More than 40 [[GlaxoSmithKline]] trademarks went to a factory in Puerto Rico. Amongst them was the title for the blockbuster diabetes drug [[Avandia]]. These were shifted in to the firm's premises in Cork in 2007, when production was phased out at [[SB Pharmco Inc]] in Puerto Rico after quality control problems arose. <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] '''The Guardian'''Accessed on 3 February 2009</ref> [[Helen Jones]], head of tax at [[GSK]] says: "It is a widespread and totally accepted practice for global companies to license out intellectual property in return for royalties which reflect the value of work carried out by the holder." <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] '''The Guardian'''Accessed on 3 February 2009</ref>
+
A report in ''The Guardian'' shows how pharmaceutical giants [[GlaxoSmithKline]] and [[AstraZeneca]] "offshore" legal ownership of their valuable trademarks to low-tax locations.<ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] ''The Guardian'' Accessed on 3 February 2009</ref> More than 40 [[GlaxoSmithKline]] trademarks went to a factory in Puerto Rico. Amongst them was the title for the blockbuster diabetes drug [[Avandia]]. These were shifted in to the firm's premises in Cork in 2007, when production was phased out at [[SB Pharmco Inc]] in Puerto Rico after quality control problems arose. <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] ''The Guardian'' Accessed on 3 February 2009</ref> [[Helen Jones]], head of tax at [[GSK]] says: "It is a widespread and totally accepted practice for global companies to license out intellectual property in return for royalties which reflect the value of work carried out by the holder." <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] ''The Guardian''Accessed on 3 February 2009</ref>
  
−
[[Zomig]] and [[Crestor]] are two of [[AstraZeneca]]'s drugs that have been placed in a tax haven in Puerto Rico. The trademark for [[Faslodex]] was assigned to [[IPR Pharmaceuticals Inc]] in the Caribbean territory, which is owned by AstraZeneca. <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] '''The Guardian'''Accessed on 3 February 2009</ref>
+
[[Zomig]] and [[Crestor]] are two of [[AstraZeneca]]'s drugs that have been placed in a tax haven in Puerto Rico. The trademark for [[Faslodex]] was assigned to [[IPR Pharmaceuticals Inc]] in the Caribbean territory, which is owned by AstraZeneca. <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] ''The Guardian'' Accessed on 3 February 2009</ref>
  
 
==Facts and Figures==
 
==Facts and Figures==
  
−
* 'GSK pays on average more than 80% of its tax to overseas countries rather than to Britain.' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] '''The Guardian'''Accessed on 3 February 2009</ref>
+
* 'GSK pays on average more than 80% of its tax to overseas countries rather than to Britain.' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] ''The Guardian'' Accessed on 3 February 2009</ref>
  
−
* 'GSK's worldwide profits were £7.4bn, the company's actual UK tax bill was only £450m.' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] '''The Guardian'''Accessed on 3 February 2009</ref>
+
* 'GSK's worldwide profits were £7.4bn, the company's actual UK tax bill was only £450m.' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] ''The Guardian'' Accessed on 3 February 2009</ref>
  
−
* 'GSK said last year that there were "wide differences in positions" between the company and HM Revenue & Customs, which might lead to litigation. But in June, the disputes were suddenly resolved "with no material impact on the expected tax rate for the year".' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] '''The Guardian'''Accessed on 3 February 2009</ref>
+
* 'GSK said last year that there were "wide differences in positions" between the company and HM Revenue & Customs, which might lead to litigation. But in June, the disputes were suddenly resolved "with no material impact on the expected tax rate for the year".' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/offshore-tax-avoidance Offshore - and out of reach to the Revenue] ''The Guardian'' Accessed on 3 February 2009</ref>
  
−
* 'It ([[AstraZeneca]]) made a settlement of up to $100m (£70m) with UK and US authorities in 2004, and it still faces "tax audits" around the world. It has put aside a precautionary $1.3bn in its accounts as a result.'<ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] '''The Guardian'''Accessed on 3 February 2009</ref>
+
* 'It ([[AstraZeneca]]) made a settlement of up to $100m (£70m) with UK and US authorities in 2004, and it still faces "tax audits" around the world. It has put aside a precautionary $1.3bn in its accounts as a result.'<ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] ''The Guardian'' Accessed on 3 February 2009</ref>
  
−
* 'The company ([[AstraZeneca]]) says it makes more than 70% of its profits overseas, and pays the necessary taxes abroad.'<ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] '''The Guardian'''Accessed on 3 February 2009</ref>
+
* 'The company ([[AstraZeneca]]) says it makes more than 70% of its profits overseas, and pays the necessary taxes abroad.'<ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] ''The Guardian'' Accessed on 3 February 2009</ref>
  
−
* The US arm of AstraZeneca was named in 2004 as one of the 30 companies involved in a large avoidance scheme sold by the US arm of the international accountants KPMG.' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] '''The Guardian'''Accessed on 3 February 2009</ref>
+
* The US arm of AstraZeneca was named in 2004 as one of the 30 companies involved in a large avoidance scheme sold by the US arm of the international accountants KPMG.' <ref> Tax Gap reporting team.[http://www.guardian.co.uk/business/2009/feb/03/1 AstraZeneca] ''The Guardian'' Accessed on 3 February 2009</ref>
  
 
==Notes==
 
==Notes==

Latest revision as of 21:35, 9 March 2009

Pharma: Tax Avoidance

A report in The Guardian shows how pharmaceutical giants GlaxoSmithKline and AstraZeneca "offshore" legal ownership of their valuable trademarks to low-tax locations.[1] More than 40 GlaxoSmithKline trademarks went to a factory in Puerto Rico. Amongst them was the title for the blockbuster diabetes drug Avandia. These were shifted in to the firm's premises in Cork in 2007, when production was phased out at SB Pharmco Inc in Puerto Rico after quality control problems arose. [2] Helen Jones, head of tax at GSK says: "It is a widespread and totally accepted practice for global companies to license out intellectual property in return for royalties which reflect the value of work carried out by the holder." [3]

Zomig and Crestor are two of AstraZeneca's drugs that have been placed in a tax haven in Puerto Rico. The trademark for Faslodex was assigned to IPR Pharmaceuticals Inc in the Caribbean territory, which is owned by AstraZeneca. [4]

Facts and Figures

  • 'GSK pays on average more than 80% of its tax to overseas countries rather than to Britain.' [5]
  • 'GSK's worldwide profits were £7.4bn, the company's actual UK tax bill was only £450m.' [6]
  • 'GSK said last year that there were "wide differences in positions" between the company and HM Revenue & Customs, which might lead to litigation. But in June, the disputes were suddenly resolved "with no material impact on the expected tax rate for the year".' [7]
  • 'It (AstraZeneca) made a settlement of up to $100m (£70m) with UK and US authorities in 2004, and it still faces "tax audits" around the world. It has put aside a precautionary $1.3bn in its accounts as a result.'[8]
  • 'The company (AstraZeneca) says it makes more than 70% of its profits overseas, and pays the necessary taxes abroad.'[9]
  • The US arm of AstraZeneca was named in 2004 as one of the 30 companies involved in a large avoidance scheme sold by the US arm of the international accountants KPMG.' [10]

Notes

  1. ↑ Tax Gap reporting team.Offshore - and out of reach to the Revenue The Guardian Accessed on 3 February 2009
  2. ↑ Tax Gap reporting team.Offshore - and out of reach to the Revenue The Guardian Accessed on 3 February 2009
  3. ↑ Tax Gap reporting team.Offshore - and out of reach to the Revenue The GuardianAccessed on 3 February 2009
  4. ↑ Tax Gap reporting team.AstraZeneca The Guardian Accessed on 3 February 2009
  5. ↑ Tax Gap reporting team.Offshore - and out of reach to the Revenue The Guardian Accessed on 3 February 2009
  6. ↑ Tax Gap reporting team.Offshore - and out of reach to the Revenue The Guardian Accessed on 3 February 2009
  7. ↑ Tax Gap reporting team.Offshore - and out of reach to the Revenue The Guardian Accessed on 3 February 2009
  8. ↑ Tax Gap reporting team.AstraZeneca The Guardian Accessed on 3 February 2009
  9. ↑ Tax Gap reporting team.AstraZeneca The Guardian Accessed on 3 February 2009
  10. ↑ Tax Gap reporting team.AstraZeneca The Guardian Accessed on 3 February 2009
Retrieved from "https://powerbase.info/index.php?title=Pharma:_Tax_Avoidance&oldid=80211"