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Forest Laboratories Inc. Message Board

  • lost_like_2008 lost_like_2008 May 14, 2010 9:25 AM Flag

    FRX is hiding tax...check from bloomberg now

    this is strange.

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    • Why no any news about IRS are hunting them yet?

    • What are you talking about ?"Hiding what tax "? Do you have a 'link' to this disclosure ?

      • 1 Reply to JONAHSPOP
      • Clip from the Bloomberg article

        (you can find the whole shebang there if you want to):

        The problem appears to be for FRX etc. is the government is going to get their cut by legislation.

        -------------------------------------------------------------
        "Companies Dodge $60 Billion in Taxes Even Tea Party Condemns
        Jesse Drucker"

        "May 14 (Bloomberg) -- Tyler Hurst swiped his debit card at a Walgreens pharmacy in central Phoenix and kicked off an international odyssey of corporate tax avoidance."


        "Hurst went home with an amber bottle of Lexapro, the world’s third-best selling antidepressant. The profits from his $99 purchase began a 9,400-mile journey that would lead across the Atlantic Ocean and more than halfway back again, to a grassy industrial park in Dublin, a glass skyscraper in Amsterdam and a law office in Bermuda surrounded by palm trees."

        "While Forest Laboratories Inc., the medicine’s maker, sells Lexapro only in the U.S., the voyage ensures most of its profits aren’t taxed there -- and they face little tax anywhere else. Forest cut its U.S. tax bill by more than a third last year with a technique known as transfer pricing, a method that carves an estimated $60 billion a year from the U.S. Treasury as it combines tax planning and alchemy. (See an interactive graphic on Forest’s tax strategy here.)

        "Transfer pricing lets companies such as Forest, Oracle Corp., Eli Lilly & Co. and Pfizer Inc., legally avoid some income taxes by converting sales in one country to profits in another -- on paper only, and often in places where they have few employees or actual sales."

        "After an economic bailout in which the U.S. government lent, spent or guaranteed as much as $12.8 trillion, the Obama administration faces a projected budget deficit of $1.5 trillion this year. In February, the administration said it would target some of the techniques companies use to shift profits offshore -- part of a package intended to raise $12 billion a year over the coming decade."

 
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