Swiss Drugs Firm Seeks To Exploit European Tax Competition
The decision by a major Swiss generic drugs maker to relocate from the Austrian
capital, Vienna to either Munich in Germany or Basle in Switzerland has thrown
the spotlight back onto the hotly debated topic of corporate tax competition
in Europe. According to a report in the Financial Times, Sandoz, the generics subsidiary
of Switzerland's Novartis is considering relocating the firm for tax purposes
following Novartis's recent takeover of German company Hexel. The FT reported that Sandoz chief executive, Andreas Rummelt, had asked governments
in all three countries what they could offer the firm in terms of tax benefits. According to Mr Rummelt, Vienna remains an attractive location for the firm's
headquarters due to its relatively light company tax regime and proximity to
manufacturing facilities. However, he went on to state that Basle offered advantages
in terms of research & development, whilst the Hexel takeover has also brought
Munich into the frame. The issue is thought likely to fan the flames of debate within the EU over corporate
tax levels, with some states, most notably Germany and France, calling for a
minimum level of taxation to prevent corporate tax 'dumping.' .
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