An Irish subsidiary of the US pharmaceutical group Abbott Laboratories made a profit of €1.8 billion in 2011 but paid no tax because it was not resident here for tax purposes. A second Abbott subsidiary made a profit of €1.1 billion and paid no tax.
Accounts for Abbott Mature Products International Ltd (AMPI)say the company is a “non-resident Irish entity incorporated in Bermuda” and that it would have been liable to €235 million in Irish corporation tax were it not exempt under the tax code.
Abbott Laboratories Vascular Enterprises Ltd (ALVE) made profits of €1.8 billion and €1.1 billion respectively in 2011. The profits of the latter included a €709 million dividend from AMPI.
AMPI has its registered office in Bermuda and is audited by Deloitte & Touche, Dublin. It distributes pharmaceutical products and in 2011 was a direct subsidiary of an Abbott company in Switzerland. Despite having a turnover of €430 million in 2011, it had no staff.
ALVE has its registered office at the law firm Matheson, at 70 Sir John Rogerson’s Quay, Dublin, and is audited by Deloitte & Touche, Dublin.
It distributes medical and nutritional products, holds investments and undertakes research and development. Net R&D expenses in 2011 were €161 million.
According to The Irish Times,
the directors of the company are all US-based and the Abbott subsidiary appears to escape Irish tax for reasons similar to those that featured in US senate hearings last week in Washington that considered the tax affairs of Apple.
During those hearings Ireland was repeatedly referred to as a “tax haven” and it was alleged that Apple had secured a deal with the Irish government some years ago that allowed it pay well below Ireland’s 12.5 per cent corporation tax rate.
Both claims have been vigorously denied by the Government. Minister for Jobs, Enterprise and Innovation Richard Bruton said claims that Ireland did tax deals with multinationals were “unfounded”.
It emerged at the Washington hearings that the Apple companies were not tax-resident anywhere because while they were incorporated in Ireland, they were managed and controlled from the United States. This had the effect of allowing them slip outside the qualifying criteria for taxation in both jurisdictions.
Abbott Laboratories has had a presence in Ireland since 1946. A spokeswoman for the company told Sligo Today,
"Abbott has been a major contributor to the Irish economy since 1946. It employs approximately 3,000 people across 11 sites in Ireland.
"The investment environment created by successive Irish administrations has historically enabled Abbott to make those investments in Ireland in the face of global competition.
"As a major Irish employer we make significant contributions to the Irish Exchequer, including more than 70 million Euros in Irish taxes in 2011, and structure our tax arrangements in full compliance with all local laws and regulations. "
Meanwhile, property agents Jones Lang LaSalle is this morning guiding a €2 million price for an office and warehouse in Dublin's Citywest Business Campus occupied by Abbott Laboratories Ireland Ltd since 2001 on a 25-year lease at €270k per annum.