BRITISH DRUG MANUFACTURER SHIRE has confirmed it received a C$266m (£146m) tax rebate from the Canadian tax authority, with a further C$174m yet to come.
Subject of a takeover bid from Canadian rival AbbVie, the windfall bolstered Shire’s position as it prepares to woo shareholders over the bid.
Shares in the FTSE100 company rose with the news, but started today down 17p at 4,553p per share, Accountancy Age‘s share price centre shows.
The company said on its website: “Shire intends to use the cash receipts to repay debt, providing Shire with increased capacity to invest in focussed business development activities.”
The ATT had previously expressed concern that the legislation was overly complex and created unnecessary complications within the practical working of the new allowances
Introduced in 2013 to encourage R&D investment, the scheme allows UK businesses to pay only 10% corporation tax on profits derived from any UK or certain EU patents
Yet, KPMG’s annual survey shows that the UK is still an attractive place to do business, despite falling in rankings in tax competitiveness and FDI appeal
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