wouldn’t be the first time..
Nine major drug makers are being questioned about their tax minimisation strategies at a Senate committee hearing today after data showed they allegedly only paid a combined $85 million in tax out of $8.2 billion in revenue.
The powerful Senate Economics References Committee is focusing on revenue big pharmaceutical firms derive from the Government-funded pharmaceutical benefits scheme (PBS).
Companies including Pfizer, AstraZeneca, Novartis, Merck Sharp & Dohme and GlaxoSmithKline are be questioned at the hearing in Sydney about profit-shifting techniques through transfer pricing and royalty payments to subsidiaries in other countries.
The senate committee has received official data showing that between the nine companies more than $3.5 billion was received from PBS funding in 2014.
Of $8.2 billion in total revenue, it is claimed the companies paid tax of $85 million, which equates to a 1 per cent tax rate.