Walgreens urged to leave US to gain tax benefit

[Newsjock]

Source: Financial Times

Walgreens has come under pressure from an influential group of its shareholders, who want the US pharmacy chain to consider relocating to Europe, in what would be one of the largest tax inversions ever attempted.

At a private meeting in Paris on Friday, investors owning close to 5 per cent of Walgreens’ shares lobbied the company’s management to use its $16bn takeover of Swiss-based Alliance Boots to re-domicile its tax base.

... The investor group, which included Goldman Sachs Investment Partners and hedge funds Jana Partners, Corvex and Och-Ziff, requested the meeting after becoming frustrated by Walgreens’ refusal to consider relocating, according to people familiar with the matter.

... A tax inversion by Walgreens would be likely to face strong political resistance in the US, where the practice has become increasingly popular during the past two years, particularly in the pharmaceutical sector.

Read more: http://www.ft.com/cms/s/0/55a76778-c294-11e3-9370-00144feabdc0.html

[agbdf]

1. Wow!

I know President Obama has been pushing to lower the corporate tax rate (ours is one of the highest in the world) but, when US corporations, who profit immeasurably from their access to our marketplace, pack up and leave just to increase their margin, causing a loss of jobs, it just makes my blood boil. I just think there's something unpatriotic about it. Shame on Walgreen's!

[Enthusiast]

6. Many American corporations pay zero taxes.

Some that pay no taxes are the most profitable.

[Art_from_Ark]

7. Walgreen's has been resisting the move

"The investor group, which included Goldman Sachs Investment Partners and hedge funds Jana Partners, Corvex and Och-Ziff, requested the meeting after becoming frustrated by Walgreens’ refusal to consider relocating, according to people familiar with the matter. "

[IronLionZion]

9. with deductions and credits, the effective rate is slightly lower than other developed countries

http://finance.fortune.cnn.com/2014/04/11/why-taxing-corporate-america-is-hard-to-do/

American corporations are actually not wanting to change it because they benefit from the current system.

[burrowowl]

2. Interesting!

They better not!
Boycott!

[msongs]

3. treat them as a foreign business entity if that is what they want to be n t

[area51]

5. +1 ........ this......^ n/t

[Nye Bevan]

8. Wouldn't that be the whole point? (nt)

[HubertHeaver]

4. Charlie will roll over in his grave

[Skidmore]

10. This claptrap about corporate tax rates is just plain deceptive and confusing.

Last Wednesday I heard an item on NPR about how so many European companies were lining up to come here because tax rates in Europe were just so onerous for them. Now which is it? Bottom line is that none of them on either side of the ocean want to pay for the infrastructure and resources they use.