Perrigo may shelve Irish expansion amid €1.6bn tax battle - (The Irish Times via NewsPoints Desk)

  • According to a person familiar with the matter said, Perrigo is considering postponing expansion plans in Dublin, Ireland after tax authorities demanded 1.6 billion euros from the company, The Irish Times reported Friday.

  • Last year, the company, who employs about 180 people in Ireland, leased new space for its corporate headquarters in Dublin and was considering hiring more staff in the city.

  • However, CEO Murray Kessler recently said the company may move its headquarters back to the US, noting that "it is hard to run a US customer-service organisation with probably the most complex product portfolio of any consumer goods company in America and do it from the other side of the ocean without the technology available to do it."

  • Last month, Irish authorities hit the company with the tax assessment, stemming from the 2013 sale to Biogen of intellectual property tied to multiple sclerosis drug Tysabri.

  • While Perrigo treated payments from the asset sale as trading income, which is taxed at 12.5 percent, Irish authorities claim it should be treated as chargeable gains and taxed at 33 percent.

  • Bloomberg Intelligence analysts Curt Wanek and Andrew Silverman said recently that the debacle is "the last thing the company needs, given it adds weight to already low sentiment that stems from growth struggles, an ill-timed spinoff of its prescription-drug unit and drug price-fixing probes."

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