In a request sent to New-York-based pharmaceutical company, Pfizer, by the United States’ Senate Finance Committee, information regarding its tax activities in Ireland have been demanded. This comes as part of an ongoing probe into the tax approaches of large pharmaceutical companies, according to a report in the Sunday Independent.
The committee, headed by Democrat Senator Ron Wyden, engaged in communication with Pfizer’s CEO, Albert Bourla. This included queries about the existence of any tax advantage agreements between Irish officials and Pfizer, as well as any income being positioned in Ireland for tax-led motivations.
The low tax rate of Pfizer, only 10% in the past half-decade compared to the US overall rate of 21%, indicating an economic advantage and has been noted. Moreover, the fact that Pfizer maintains an Irish staff count of 5,000 is likely to arouse concern within the country’s authorities.
In other news, an area in Donabate, Co Dublin has been procured by listed house building company Cairn Homes for in excess of €50 million. The new acquisition is capable of housing over 1,000 homes and was purchased from fellow home construction company Cannon Kirk which is supported by American private equity company Oaktree.
Following their assistance seven years ago when Cannon Kirk left NAMA thanks to over €100m provided by them, Oaktree has continued to encourage Cannon Kirk’s growth. The acquisition by Cairn Homes marks a noteworthy stride back into new ventures after they have remained relatively static in line with their focus on land banking after their IPO in 2015.
It has also been reported in the Sunday Tines that senior loans for the Blanchardstown Centre, northwest of Dublin, have been agreed to be prolonged to facilitate an orderly sale of the shopping centre intended to increase its value.
Goldman Sachs, who bought the shopping centre for €750 million towards the end of 2020 and also acts as a junior lender for the development of 1.2 million square feet, began advertising the mall for sale last year. The estimated selling price was somewhere between €650 to €725 million. The transaction has been moving at a sluggish pace, compelling prominent lenders such as Morgan Stanley, AIG and Hayfin Capital to extend the lifespan of the debt linked to the centre, the newspaper reported.
AIB took action to safeguard its stake as the main lender to The Square Town Centre in Tallaght, by appointing receivers, after efforts to sell the business at a reduced price stalled. The receivers will now manage an organised sale.
According to the Sunday Independent, since the Russian attack, CRH, an Irish building materials group, has invested €80 million into its Ukraine operations and plans to invest an additional €100 million. Half of the €80 million investment was directed towards a cement terminal in the Kyiv area that inaugurated last year. The impending €100 million will fund the acquisition of Ukrainian assets of Dykerhoff, a subsidiary of Italian cement group Buzzi. The agreement was shared almost 12 months ago, but is still awaiting competitive approval.
In Ireland, Citigroup employees have complained about how the bank has handled job cuts. Representatives of the staff facing layoffs from Citigroup’s Irish branch submitted a formal complaint letter regarding the redundancy procedure. In a process initiated in March, 100 individuals were laid off, whereas the bank announced that up to 168 jobs might be at risk due to a reorganisation within the company. The representatives, as mentioned in the letter, had inquired multiple times for details explaining the reasons for the layoffs so they could comprehend the rationale and recommend alternatives. Despite this, they allegedly have not received any information. A spokesperson for the bank insisted that the consultation process had been conducted correctly in accordance with their statutory obligations, the report concluded.
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