Belfast Telegraph

Politicians in the States round on Pfizer's Irish plan

By Staff Reporter

US presidential hopefuls have lined up to slam drug giant Pfizer's planned move to become tax resident in Ireland.

Democrats heaped the most criticism on the New York-based drugmaker, with Hillary Clinton accusing the company of using legal loopholes to avoid its "fair share" of taxes in a deal that, she said, "will leave US taxpayers holding the bag".

Pfizer will shift its global headquarters to Ireland for tax purposes following a deal to merge with smaller Dublin-based rival Allergan in a transaction that is expected to close next year.

US politicians have condemned the deal, which means that Pfizer's global profits will potentially be liable for tax at Ireland's 12.5% rate instead of the 35% levied in the US.

The White House declined to comment on Pfizer's proposals, but a spokesman for US President Barack Obama said Congress should take action to prevent more such transactions.

Ms Clinton, frontrunner for the Democratic presidential nomination in the November 2016 election, said she would propose steps to prevent more inversions, but she did not provide details.

"We cannot delay in cracking down on inversions that erode our tax base," added the ex-US secretary of state.

Belfast Telegraph

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