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The pharmaceutical company Perrigo has failed in its action before the Superior Court to annul a tax assessment of 1.64 billion euros.
Perrigo claimed that Revenue’s evaluation two years ago represented a violation of his legitimate expectations, an abuse of power and an attack on his rights.
However, the Supreme Court found that Perrigo had not established any basis to interfere with the assessment that arose from what Revenue claimed was an underpayment of taxes in a settlement on the sale of the drug Tysabri.
The transaction that resulted in the assessment involved the sale to Biogen in 2013 of Perrigo’s remaining 50% interest in the intellectual property related to Tysabri, used to treat multiple sclerosis and Crohn’s disease.
The proceeds characterized this sale as a capital transaction, eligible to be taxed at a 33% rate rather than a business transaction as part of their corporate tax returns, which would have attracted a 12.5% tax.
The Superior Court determined that Perrigo had not established any basis to interfere with this decision.
Perrigo had appealed the assessment to the Tax Appeal Commission and the High Court has ruled that it will be up to the Commission to decide whether the deal was a capital or commercial transaction.
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