Two Democratic lawmakers have renewed accusations that large pharma companies have evaded paying U.S. taxes through a legislative loophole that drugmakers are allegedly lobbying to retain.
In the company’s first-quarter earnings call Tuesday, J&J CEO Joaquin Duato said there’s a better way to encourage drug manufacturing in the U.S. than President Donald Trump’s threatened pharma tariffs.
Eli Lilly CEO David Ricks on Tuesday said at the Economic Club of Washington that tax and regulation reform and drug affordability were some policy focuses for the company in a second Trump administration.
A federal judge said Amgen (AMGN.O) must face a proposed class action accusing the drugmaker of waiting too long to tell shareholders it might owe the Internal Revenue Service $10.7 billion for underreporting six years of taxes.
Teva Pharmaceutical Industries has entered into a deal with the Israel Tax Authority to resolve all pending litigation related to taxes payable for the years from 2008 to 2020, the drugmaker said on Tuesday.
Three years into a Senate Finance Committee investigation into Big Pharma’s tax strategies, committee Chair Ron Wyden, D-Oregon, has set his sights on Pfizer.
By sending a letter to Pfizer CEO Albert Bourla, Ph.D., Wyden hopes to learn more about the tax payments made by the pharma giant in recent years. The senator noted that the company's 9.6% tax rate in 2022—and its negative tax rate last year—were “substantially lower” than the U.S. corporate tax rate of 21%.
Tax day is here. While Americans are scrambling to file last minute returns, things are somewhat more complicated for corporations.
Corporations are supposed to pay a nominal tax rate of 21%. But in recent years, the biggest pharmaceutical companies had an average effective tax rate of less than 12%, according to an analysis by the Senate Finance Committee.
Why is that happening? Economist Brad Setser, of the Council on Foreign Relations, spent some time trying to understand it. He pointed to Pfizer as an example. "In a typical year, Pfizer reports losing money in the United States and making money abroad," he says. "And as a result, in a typical year, Pfizer pays a lot more in tax outside the United States than it pays inside the United States."
In the House of Representatives first major bipartisan win of the year, congress recently passed the Tax Relief for American Families and Workers Act of 2024 which would, among other high-profile provisions, restore a set of corporate tax breaks related to research and development (R&D).
U.S. tax law changes six years ago slashed pharma companies’ rates and saved them billions. Now, a push for an international tax floor could disrupt their accounting.
Viatris has successfully held its ground in a pitched battle with the IRS over tens of millions of dollars. The case hinges on charges Viatris accrued in patent cases tied to its generic drug approvals early last decade.