“Nobody is using Ireland as a tax haven” – Minister Simon Coveney
Pharmaceuticals manufacturer Pfizer is set to move its tax address to Ireland following a major merger
A Government minister has said that Ireland is not a tax haven, and that companies choose to locate here for ‘lots of reasons’.
It comes in the wake of the decision by the pharmaceuticals manufacturer Pfizer to move its tax address to Ireland in a merger.
The move has been condemned by US presidential hopefuls Hillary Clinton and Donald Trump.
Yesterday Pfizer announced it has agreed to buy Botox maker Allergan in a deal worth more than $150bn (€141bn) – the biggest deal in pharmaceuticals history.
The newly merged entity will have its corporate headquarters in Dublin, with The Irish Times reporting it could see the exchequer here enjoy a boost of up to €620m a year.
Agriculture Minister Simon Coveney says that there are a number of reasons – not just tax – why companies choose to base themselves in Ireland:
The US Treasury Department has issued a letter on so-called tax inversion deals, saying that it is reviewing means of stopping them taking place. It plans to release a guidance on the matter later this week.
Hilary Clinton said in a statement yesterday that “for too long, powerful corporations have exploited loopholes that allow them to hide earnings abroad to lower their taxes. Now Pfizer is trying to reduce its tax bill even further”.
The move was also criticised by Republican hopeful Donald Trump, who claimed “the fact that Pfizer is leaving our country with a tremendous loss of jobs is disgusting. Our politicians should be ashamed”.
Newstalk’s Business Editor Vincent Wall says preventing other companies doing the same requires action by US Congress in order to change the high corporation tax in the country:
