MarketLine Blog

Posts tagged to Tax

Developments in international tax important for multinational corporations

MarketLine

Outrage in the press can cause confusion about the process of tax planning. The nuanced relationship between the spirit and the letter of the law, and wider issues such as the conflict between disparate national tax systems and competitive international trade are therefore often missed. A recent MarketLine case study gives detailed examples of tax planning involving both multinationals and private individuals as well providing insight into changes in tax policy and the debate around the morality of tax avoidance. Although tax law itself may not be the most exciting… Read more

Pfizer and AstraZeneca: merger of majors cancelled or just postponed?

MarketLine

Pfizer is currently the world’s largest research-based pharmaceutical company, with 2013 revenues (excluding consumer health) of $47.9 billion. Recently, it made a bid for the UK’s AstraZeneca (2013 revenues of $25.7 billion) equivalent to £50 ($78) per share. This valued the company at more than £63 billion ($98 billion). A lot of money, you might think, but AstraZeneca lost no time in rejecting the offer. The same thing happened back in January this year, when the American company valued AstraZeneca at around £59 billion. Its CEO commented of the latest… Read more

Tax avoidance by large multinational companies in the UK is unfair to small businesses

  Starbucks has recently been in the news after it came to light that they have reportedly paid no tax in the UK for the last three years. Reuters has suggested that the company is making use of offshore licensing, steering profits to Switzerland, and intra-group funding to reduce the profits they earn in the UK. This has resulted in the company reporting losses, whilst expressing to investors how successful the UK arm of the business is. This contradiction is the result of tax avoidance through the use of an… Read more