Senate Finance report says AbbVie shifted profit overseas to cut taxes

Vinson

A signal stands exterior a Abbvie facility in Cambridge, Massachusetts, U.S., May 20, 2021. REUTERS/Brian Snyder/File Image

Sign up now for Free limitless access to Reuters.com

July 7 (Reuters) – Drugmaker AbbVie Inc generates most of its income in the United States, whilst shifting most of its revenue overseas in purchase to stay away from U.S. taxes, an interim report from the Senate Finance Committee mentioned on Thursday.

According to the Democratic workers report, far more than 75% of Illinois-primarily based AbbVie’s revenue were being created in the United States, whilst just 1% of its money was claimed in its house place for tax reasons.

This has been a prolonged expression pattern for the business. In 2018, Reuters laid out how AbbVie claimed its revenue in reduce tax jurisdictions, which was possible in section since the business parked the the vast majority of the patents for its top rated-marketing drug, the rheumatoid arthritis treatment Humira, in tax haven Bermuda.

Sign up now for Absolutely free limitless accessibility to Reuters.com

The Senate Finance Committee report reported that the gain shifting has resulted in “stunningly very low effective tax premiums” for the drugmaker in recent many years: 8.7% in 2018, 8.6% in 2019 and 11.2% in 2020. The present-day U.S. company tax price is 21%.

The report instructed reforms to the U.S. tax code to treatment the situation, which include rising taxes on certain cash flow earned abroad and fixing loopholes that really encourage offshoring.

AbbVie did not respond to a ask for for comment.

Register now for Totally free unrestricted entry to Reuters.com

Reporting by Michael Erman
Editing by Invoice Berkrot

Our Specifications: The Thomson Reuters Have confidence in Principles.

Next Post

Your Business Blog: A Content Marketing Engine

[ad_1] There are few things more powerful when it comes to driving traffic to your company’s website than business blog posts. By harnessing the power of search engine optimization, frequent and consistent blog articles can pull in a higher percentage of leads and website visits than all other SEO tactics […]