A growing number of American corporations are taking over European companies and moving their headquarters to Europe in order to save hundreds of millions of dollars on taxes in the long term.
Most recently reports The Financial Times’ Anousha Sakoui, two pharmaceutical companies, Michigan-based Perrigo and New Jersey-based Actavis, acquired Irish companies and moved their headquarters to Ireland. By doing so, they will pay only a 17 percent tax rate compared to the 30 percent they would have to pay in the U.S. Both companies estimate they will save about $150 million over the next two years.
In another case, Omnicom, a U.S. advertising company, will save about $80 million in U.S. taxes when it moves its headquarters to the Netherlands after merging with Paris-based Publicis.
The migration of U.S. corporations to European countries comes as some lawmakers in Washington have ramped up their calls for corporate tax reform. Read more at The Financial Times
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