Takeda to record 63 bln yen provision, update Q1 results on Irish tax issue
Takeda Pharmaceutical Co (4502.T) said on Monday it will record a provision of about 63 billion yen ($574.56 million) in its financial statements for the first quarter to reflect a decision by Ireland’s tax appeals body relating to tax assessment received by company’s unit on a break fee.
Takeda said it received “a decision by the Irish Tax Appeals Commission on July 30, 2021 to uphold the Irish Revenue Commissioners’ position related to the treatment of a break fee received by Shire plc in October 2014 from AbbVie Inc,”.
“First Quarter FY2021 reported IRFS-based financial results will be updated to reflect the impact of the decision with no impact on core and underlying financial results,” it said, adding that it will refile the revised information by Aug. 6.
Japan’s biggest drugmaker said it plans to challenge this outcome through all available legal means including appealing the decision to the Irish courts.
The company is not revising its forecast for the full fiscal year 2021 and will update the outlook at appropriate timing by taking this decision as well as other factors into consideration.
Shire Plc, which Takeda acquired in 2019, received a tax assessment from the Irish Revenue Commissioners to tax a break fee the company received from AbbVie Inc (ABBV.N) for terminating its offer to acquire Shire. Takeda had appealed this assessment in 2020.