Perrigo does not get the cancellation of the tax assessment of 1,640 million euros



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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.

In a statement, Perrigo said it will now assess whether or not to appeal today’s decision or proceed to the Tax Appeals Commission to challenge the assessment.

The company’s president and CEO, Murray S Kessler, said they continued to feel strongly that the company had a legitimate expectation that Revenue would not re-characterize Perrigo’s trade in a “retrospective, unique and unannounced manner” and would issue a evaluation this way.

He said the company was disappointed that the judge didn’t see it that way. But he said judicial review was only one avenue available to the company.

Mr. Kessler said they firmly believed the company would prevail on the merits of the assessment in the Tax Appeals Commission.

He said Perrigo will continue to vigorously defend its position on behalf of shareholders.



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