The Internal Revenue Service (IRS) is currently engaged in a legal battle with the large biotechnology corporation Amgen over a tax debt that totals $10.7 billion that Amgen has not paid.
This tax debt is the result of Amgen’s wrongful transfer of assets to a subsidiary that is domiciled in Puerto Rico.
The Internal Revenue Service (IRS) argues that the biotech giant unlawfully shifted around $24 billion in profits between the years 2010 and 2015, which resulted in a tax debt that is still outstanding at $10.7 billion.
In a recent article that was published in the Wall Street Journal, the following information regarding the ongoing legal dispute that is taking place between the government agency and the pharmaceutical company:
The dispute that has arisen between Amgen and the Internal Revenue Service (IRS) is the most recent example of the heightened government scrutiny of the overseas tax procedures of companies operating in a range of industries, including the pharmaceutical and technology sectors.
Because of this matter, the share price of Amgen has been subjected to negative pressure, and the possibility that the company’s tax rate will be significantly increased coming forward has grown as a result, provided that the IRS is ultimately successful.
According to the findings presented by FactSet, Amgen has historically had one of the most competitive effective tax rates within the pharmaceutical business.
The company has reported a median effective tax rate of 12.5 per cent over the previous decade. This figure compares to a median rate of 18 per cent among the 10 largest drug companies in the United States.
An Amgen spokeswoman issued the following statement to the WSJ, which specifically stated the following information: “Our tax returns have always been compliant with the law and reflect our position that the appropriate allocation [taking into account the “equity value of our Puerto Rico subsidiary”] has not changed.”
The Internal Revenue Service has not released a statement addressing the dispute regarding the routine that it normally follows because it is considered to be standard practice.
However, the fact that the tax department is currently reviewing Amgen’s tax files for the years 2016 through 2018 is common information, which means that the Big Pharma business may soon be subject to large tax fines.
Amgen is a pharmaceutical company that is well-known for producing medications such as Enbrel, which is a treatment for arthritis, and Aimovig, which is an injection that prevents migraines.
Both of these medications are manufactured by Amgen. Amgen describes itself on its website as a “pioneer internationally in biotechnology.”
The following is how the company describes itself to the public.
Read More:-
- A Longtime Financial Chief for Dean Kirkland Has Pleaded Guilty to Personal Tax Charges.
- Alabama Football: Bryce Young Makes His Way Into The Transfer Portal
- When in the Year Should You Max Out Your 401(K)?
Amgen concentrates its efforts on problem areas where there is a large unmet medical need and leverages its expertise to look for solutions that can improve people’s health outcomes and dramatically improve the quality of their lives.
Amgen has been an innovator in the field of biotechnology ever since the company was founded in 1980.
The business has flourished to the point where it is now recognised as one of the most successful independent biotechnology enterprises in the entire world.
It presently provides care to millions of patients across the world and is actively trying to develop a pipeline of medications that have the potential to become industry leaders.
