Medical device companies Abbott (NYSE:ABT) and Boston Scientific (NYSE:BSX) paid nearly zero in taxes during 2011, according to the Irish Times, part of a headline-grabbing scandal that’s put the Emerald Isle atop the list of global tax havens – much to its chagrin.
The news comes as Ireland’s Minister of State for European Affairs, Lucinda Creighton, heads to the U.S. this week on a trade mission. Ireland cuts no special deals for any company, Creighton told the U.S. Senate, but the high corporate tax rate in the U.S. drives firms to seek more advantageous tax structures elsewhere, she said, according to the newspaper.
"There is no doubt that some companies are taking advantage of the global legal and tax arrangements in a variety of jurisdictions," Creighton said. "That is not something that Ireland can solve on its own. It is not something that the US or Ireland can solve together."
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Abbott’s Irish subsidiaries paid no taxes on the €2.9 billion in profits it reaped in Ireland during 2011, according to the Irish Times. Boston Scientific paid a mere €40 million (about $60 million) on its $1.4 billion in Irish profits, the newspaper reported. That’s a tax rate of just 4%.
Another medical device titan, Covidien (NYSE:COV), is registered as an Irish corporation despite having its global headquarters in Mansfield, Mass.
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