DONALD TRUMP CITED US pharmaceuticals giant Pfizer’s move to Ireland as he committed to returning American companies to home soil last night.
In a victory speech after winning three key primaries, the Republican presidential frontrunner said he would cut tax rates to attract multinationals back to the US.
Pfizer confirmed last year that it had agreed a $160 billion (€150 billion) reverse merger with Irish-based Botox maker Allergan, creating the world’s largest drug company by revenue.
The so-called inversion deal will involve the newly-created company, to be called Pfizer PLC, shifting its tax base to Ireland, with the firm’s operational headquarters remaining in the US.
Pfizer estimates that the relocation will reduce its effective tax bill to between 17% and 18% of profits in the first year after the merger, down from around 25% currently, due to Ireland’s lower corporate taxes.
That would be enough to save the company $1 billion (€940 million) every year.
Trump referred to the move as he told supporters he would overhaul the tax code to ensure companies remain in the US.
If elected to the White House, he said, “Apple and all of these great companies will be making their products in the United States”.
We’re not going to be losing our companies.
Our companies are leaving our country rapidly, whether it’s Carrier air conditioning, whether it’s Ford, whether it’s Eaton … Pfizer – great company … they’re going to Ireland and there’s so many more.
Trump added: “Everyone agrees – Democrat and Republican – that the money should come back.
“There is $2.5 trillion (€2.3 trillion) outside this country. Everyone agrees the money should be here and the politicians for three years haven’t been able to make a deal.
We could make a deal … If I sat down with a few of the senators or a few of the congressmen, you could make a deal on that in 10 minutes if you knew what you were doing.