€ 398m tax bill to drug giant Takeda confirmed
Japanese pharmaceutical giant Takeda said the Tax Appeals Commission had upheld Revenue’s position on a $ 398 million tax assessment it is pursuing in connection with severance pay that Shire received from AbbVie.
lease, which Takeda acquired in 2019 for approximately $ 60 billion (â¬ 51 billion), received a tax assessment of â¬ 398 million in November 2018. The assessment sought to tax the breakage fee of $ 1.635 billion. dollars that Shire received from AbbVie. The charges were related to a canceled offer worth $ 54 billion made by AbbVie to acquire Shire in 2014.
Takeda appealed the Revenue assessment and at the end of 2020 a hearing was held before the Irish Tax Appeal Board.
According to two announcements from Takeda, the Tax Appeals Board confirmed Revenue’s position.
Takeda has now recorded a tax charge of 62.7 billion JPY (482 million euros), including accrued interest until June 30, 2021, net of 0.5 billion JPY associated tax benefits, to its quarterly financial statements.
In an announcement, Takeda, listed on both the Tokyo Stock Exchange and the New York Stock Exchange, said it intended to challenge the decision by “all available legal means”, including an appeal to Irish courts.
The company has also revised its financial summary for the three months through June 30, 2021 and re-filed the information with the Tokyo Stock Exchange.
Takeda is not revising its forecast for the full year ending March 31, 2022. However, it said it will update the outlook at “the appropriate time taking this decision and other factors into consideration.”
The pharmaceutical company said it would continue to “assess the merits” of the Irish Tax Appeal Board’s decision.
In February, Takeda announced a â¬ 36 million investment in its Grange Castle factory in Dublin, which will create around 100 new jobs over the next three years.
Last December, Takeda Ireland also launched the expansion of its Bray plant. At the time, the company had invested 20 million euros in the Co Wicklow site over the past two years, where it employed more than 340 people.
In January 2020, Takeda confirmed it was selling its business in Dunboyne, County Meath. He acquired it as part of the deal with Shire, which invested 375 million euros in the facility. MSD purchased the facility last August.
Takeda said he had nothing else to share beyond what had already been made public.