herald

Tuesday 24 October 2017

Tax rate lures US firm

PHARMACEUTICALS

US drugsmaker Salix Pharmaceuticals is to merge with Dublin-based Cosmo Technologies in a deal aimed at cutting its tax bill.

The firm is the latest to face down criticism from US lawmakers for seeking to shift its tax base abroad. Medtronic and AbbVie are also planning to execute similar deals.

The firm said the move establishes a "tax-efficient corporate structure" that enhances Salix's acquisition strategy, as well as making it a leader in its field.

IDA chief executive Barry O'Leary said this week that some tax inversion deals could be bad for Ireland's reputation if they had "no substance".

Medtronic previously said it is buying Dublin-based Covidien.

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