Drug companies push back on global tax deal |
Pharmaceutical executives, lobbyists and consultants are citing the sector’s involvement in the fight against Covid-19 as they quietly push back against a deal by many of the world’s biggest economies to better harmonize corporate taxation throughout the world. A total of 130 countries have broadly agreed to a deal that would establish a minimum corporate tax of 15% within their countries, so reducing opportunities for international tax avoidance. “We led the world in responding to this pandemic,” is how one drug company executive described a key industry message, reports the Wall Street Journal. Ipsita Smolinski, of U.S. health care policy consulting firm Capitol Street, said: “There certainly is a halo from Covid,” but cautioned “I think that halo will wear off.” Richard Collier, who teaches international tax law at the University of Oxford in the U.K., says the industry “has done a lot of tax planning and has put a lot of intangibles into tax havens,” and in the wake of the global tax framework, “The ground has shifted for the worse.”