On Monday announced the Treasury of the United States that the rules now in place, with immediate effect, to meet the gate these tax considerations related foreign purchases.
A Swedish point current example in year on such a business that has been in the offing – but so far faltered – are American Pfizer stubborn courtship of Astra Zeneca.
The world’s largest pharmaceutical companies keen interest in AstraZeneca, based in the United Kingdom, is considered mainly be a consequence of the so-called tax inversion, a method to acquire a smaller company in a country where taxes are lower and move its headquarters there. Britain has lower corporation tax than the USA has.
Administration during the American president during the year were fully occupied with reviewing legislation to introduce rules to make it less favorable to enforce these tax-driven transactions.
And on Monday introduced some new rules, announced the American media. Finance Jacob Lew states, according to CNN, that he and the department now taken the first targeted steps that aim to make such tax transactions less profitable.
Until now, the American company that acquires / merges with a foreign corporation, had to own more than 80 percent of the latter to successfully invert, thus able to move its head office to the other company’s registered office is in another country and to benefit from the country’s lower tax.
The rules introduced on Monday means that it will no longer be possible to fiddle with dividends and transfers of assets between the companies in order to invert.
Many analysts have questioned how Barack Obama and the White the house should be quiet in the country a rapid change in the law when the American Congress is deeply divided over the tax issue. The question is whether the American company Pfizer is thinking about now that the company ensures that the American president took the first concrete steps for a stringent law to stop the approach / the deals that American companies engineer to take advantage of favorable corporate taxation in countries outside the United States.
Many speculate simultaneously in Pfizer in the fall will make a new, more successful attempt, to buy Astra Zeneca. This speculation is also illustrated by the Astra Zeneca approached Year high levels again.
The highest price is 2 May with AstraZeneca reached 540 kronor on the Stockholm Stock Exchange since Pfizer once again skewered his bid for competitor. When the stock market closed on Monday, the share price was SEK 535 and thus a boost by 40 percent since January and stumbling near the high for the year.
In the opening trade on Tuesday in Stockholm dropping Astra Zeneca. After ten minutes of trading, the stock has fallen 4 per cent and taken down to the course level of 513 crowns.
A business that has already been implemented and ended in the spotlight of the day almost a month ago is hamburger giant Burger King purchase of the Canadian coffee chain Tim Hortons for the equivalent of approximately 79 billion. This will create the world’s third largest fast-food companies.
The deal also allowed the billionaire Warren Buffett was spotlighted. For it was his company Berkshire Hathaway who went in with $ 3 billion in funding.
Warren Buffett has been a proponent of paying taxes in the United States but his tax halo has fallen askew after this deal, which aims to place the new merged company’s headquarters be in Canada, which enables the Group to avoid certain taxes in the United States. Canada has a much lower corporate tax than what the United States has. 15 percent should be compared to 35 percent in the United States.
Investment Banks on Wall Street draws in large amounts in the tax business. According to a survey last summer, made by DealBook that is part of the New York Times, these banks have brought in nearly $ 1 billion in the last three years of income on to recommend American companies to buy companies abroad and thus reduce their tax burden.
Criticism of the tax business is tough in parts of the United States. Not least is America’s most powerful man, the president, extremely critical and has also called companies that make tax business for företagsdesertörer.
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