Posted Apr 28, 2022, 8:55 AM
New imbroglio with the tax authorities for Amgen. The American laboratory indicated on Wednesday that the tax services claimed 7.1 billion dollars from it for having incorrectly allocated its profits between different entities in the United States and in the American territory of Puerto Rico between 2013 and 2015.
The California-based group explains in a press release that it received a request on April 18 for adjustments increasing its taxes by 5.1 billion, plus interest, as well as a penalty of 2 billion. The tax authorities had already demanded adjustments of the order of 3.6 billion dollars, plus interest, for the period 2010-2012.
An “unfounded” claim
Amgen, the inventor of medical-grade EPO, says the claim is “baseless” since Puerto Rico, which typically offers corporate tax incentives, is home to its main production site. “Amgen’s earnings split between its US and Puerto Rico entities appropriately reflects the major contributions made by the company’s subsidiary in Puerto Rico,” he said.
The laboratory, which has already challenged before a tax court the adjustments requested for the period 2010-2012, plans to do the same for the new request. This procedure could take several years, he warned.
Amgen also presented disappointing quarterly results. Its turnover increased by 6% to 6.2 billion dollars over the first three months of the year. Sales of its products only increased by 2%, even if the group took advantage of the partnership with Eli Lilly around the manufacture of antibodies for anti-Covid treatment. Its net profit fell by 10% to 1.5 billion. The action fell 6% in electronic trading on Wall Street.
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