Saturday, November 10, 2012

How can Viagra maker Pfizer pay no UK tax? Top executives from leading global firms face questions over their tax affairs by MPs on Monday

One of the largest suppliers of drugs to the NHS escaped paying any tax to the UK Government last year, it has emerged.

Pfizer, the company behind the best-selling drug on the UK market, Lipitor, and impotence drug Viagra, had a turnover of £1.8bn on its sales in the UK last year. But despite its huge business in this country, the accounts of the company's British-based subsidiary suggest it made an operating loss of £59m in 2011 and £46m in 2010.

Critics say Pfizer's operating loss is this country is typical of the way in which large multi-national companies are systematically able to legally avoid paying tax by piling costs into high tax jurisdictions, while reporting profits in low tax havens.

Globally, Pfizer made $12.7bn. If its profits margin in the UK had been similar to average, it would have made a pre-tax profit of £347m on its UK earnings – on which it might have been expected to pay tax of 25 per cent.

http://www.independent.co.uk/news/uk/politics/how-can-viagra-maker-pfizer-pay-no-uk-tax-8301414.html

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