Medtronic Not Concerned About Latest U.S. Effort to Curb Tax Inversions
November 20 2015 - 8:30AM
Dow Jones News
Medical-device company Medtronic PLC said Friday that the
Treasury Department's latest effort to curb the tax benefits of
companies moving their headquarters overseas wouldn't "have a
material financial impact," on the company.
Since last year U.S. regulators have cracked down on
tax-beneficial corporate migrations known as inversions. On
Thursday, the Treasury Department issued its latest notice seeking
to limit the benefits that occur when a U.S. company acquires a
foreign subsidiary and moves its headquarters overseas seeking to
slash its tax bill.
Medtronic acquired Dublin-based Covidien PLC earlier this year.
That acquisition allowed Medtronic to move its headquarters from
Minneapolis to Dublin, the latest in a wave of such moves that have
been occurring most notably in the pharmaceutical sector.
Over the past couple of years, the combination of low foreign
tax rates and creative financial structuring, layered on top of a
global mergers-and-acquisitions boom, has been a potent incentive
to the trend.
Medtronic didn't explicitly reference any tax benefits when
addressing its move to Ireland but said that the "acquisition of
Covidien, which closed in January of 2015, was undertaken for
strategic reasons and has created a company that is positively
impacting the lives of more patients, in more ways and in more
places around the world."
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 20, 2015 08:15 ET (13:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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