Cites savings to taxpayers, calls for legislators to take bold steps to slow inversions
WASHINGTON – Frank Clemente, executive director of Americans for Tax Fairness, issued the following statement today about the decision by AbbVie Inc. not to purchase Shire Plc., based in Ireland. The Shire transaction would have allowed AbbVie to undergo a “corporate inversion,” changing its corporate address to the tiny island of Jersey, a tax haven.
“AbbVie’s decision is a big win for American taxpayers, who would have been forced to pick up the tab for this obvious tax dodge. And it is further evidence that the Obama administration’s new rules will help slow some corporate inversions. But Congress needs to act by passing comprehensive legislation. Americans are deeply angry about these corporate defections, and those who stand up for reform have much to gain.”
“At the end of 2013, AbbVie had $21 billion in profits offshore on which it had not yet paid U.S. income taxes. It is likely that AbbVie would have avoided paying billions of dollars of U.S. taxes on this offshore income if it had gone through with a corporate inversion. That’s real money that can be used to do real things here in America to make our country stronger.
“Taxpayers have President Obama to thank because his Administration closed several tax loopholes that made inversions very attractive. The Treasury Department and IRS recently issued a notice that effectively prevents companies from using an inversion to avoid paying taxes on the profits they have booked offshore – and not paid U.S. taxes on.
Americans for Tax Fairness is a diverse coalition of 425 national and state organizations that collectively represent tens of millions of members. The organization was formed on the belief that the country needs comprehensive, progressive tax reform that results in greater revenue to meet our growing needs. ATF is playing a central role in Washington and in the states on federal tax-reform issues.