Every so often, a company announces that it is considering its “strategic options” for one of its businesses, which means that it wants to ditch it as soon as possible. This would be a good time for technology companies to consider their strategic options for their global tax arrangements.
Pfizer has finally made a public announcement of its interest in AstraZeneca. One of the main points of the deal, it turns out, is tax inversion – turning Pfizer into a UK-domiciled company.
Pfizer is making tax inversion a point of the proposed deal Photo: Bloomberg
About a year ago I was in San Francisco’s Pacific Heights, gazing down at the Golden Gate Bridge from one of Larry Ellison’s many spectacular homes. The Oracle chief executive wasn’t there – he had lent the house out for a reception. In any case, he would be the last person to apologise for enjoying the fruits of his success. But the view from technology executives’ balconies is getting stormier. After banks and bankers, could they be next to feel the sting of a populist backlash?
When David Cameron flew to Davos last week to tell companies that reduce their tax bills by dividing activities among countries to “wake up and smell the coffee”, his target was clear. Starbucks now faces a consumer boycott and has been publicly accused of acting unethically.