Perrigo resolves Irish tax assessment for 297 million euros

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DUBLIN, September 29, 2021 / PRNewswire / – Perrigo Company plc (NYSE; TASE: PRGO) (“Perrigo” or the “Company”), a leading supplier of Affordable and Quality Personal Care Products, announced today that it has entered into an agreement with the Irish Office of Tax Commissioners for the Amended Assessment Notice (“NoA”) dated November 29, 2018. The NoA had demanded an income tax amounting to around 1.6 billion euros, excluding interest and penalties. At July 9, 2021, Irish Revenue admitted that it was not aware of all the relevant facts when it issued the NoA in 2018 and therefore Irish Revenue would not object to certain adjustments which would result in an overall reduction of more of 660 million euros in income tax claimed in the NoA as issued. At this point, Perrigo estimated that the maximum amount of income tax claims in dispute had effectively been reduced to less than € 1.0 billion, excluding interest and penalties.

Although the Company believes that its tax position was correct and would have ultimately been confirmed by the Tax Appeals Commission, given the risks inherent in any litigation, as well as the ongoing costs of what could have been years of litigation and the uncertainty which would create, the Company and Irish Revenue agreed to settle this matter on the following conditions:

  • Perrigo agrees to pay 297 million euros in full and final settlement of all debts resulting from the sale of the Tysabri® patents and taxable over the periods FY13 to FY21 inclusive;
  • Irish Revenue will give Perrigo a credit for certain taxes already paid and for certain unused R&D credits, all of which will be applied to the figure of € 297 million, so that the total cash payment Perrigo will make to Irish Revenue in the framework of this settlement will be 266.1 million euros;
  • The regulations provide that no interest is due and that no penalty applies;
  • For settlement purposes only and on a “without prejudice” basis, the parties agree to apply an alternative tax base to the respective positions taken by Irish Revenue in the NoA and by Elan Pharma in its tax returns;
  • Irish Revenue will not take any further action regarding the NoA or any Tysabri®– income or related transactions.

Irish Revenue has confirmed in writing its acceptance of the above conditions, and Perrigo plans to sign a formal settlement agreement with Irish Revenue in the coming days. Perrigo will make a payment of € 266.1 million to Revenue within seven days of the parties signing the settlement agreement. The Company expects to fund this settlement out of cash.

Perrigo Chairman and CEO Murray S. Kessler commented: “We believe that resolving this tax dispute with Irish Revenue is in the best interests of all stakeholders at Perrigo, as it removes a major uncertainty which has been a major distraction for the company for the past three years. While we continue to believe that our tax positions were correct and would ultimately have been confirmed by the tax appeal process, we recognize that this process was uncertain and could take many more years. With what was once a multi-billion dollar uncertainty behind us, Perrigo can focus all of our efforts on realizing our Consumer Self Care vision and long-term value. “

In addition, Perrigo announced that it had received € 355 million in cash on behalf of Alychlo NV and Holdco I BE NV (“Sellers”) in payment of the previously announced arbitration award rendered in favor of Perrigo Ireland 2 (“Perrigo Ireland ”). The prize was awarded August 27, 2021, by a court sitting under the rules of the Belgian Arbitration and Mediation Center and relating to claims arising from the share purchase agreement between the sellers and Perrigo Ireland dated November 6, 2014. Under Belgian law, sellers have the right to challenge the court’s award up to three months after the date of the award. However, Perrigo does not believe that the Sellers have legal grounds for such a dispute.

About Perrigo

Perrigo Company plc (NYSE; TASE: PRGO) is a leading supplier of Quality and affordable self-care products and over-the-counter (OTC) health and wellness solutions that enhance individual well-being by enabling consumers to proactively prevent or treat conditions that can be self-managed. Driven by its self-care strategy for consumers, Perrigo is the largest OTC store brand player in the United States in categories in which it competes with more than 9,000 SKUs under customers’ own labels. Mark “. In addition, Perrigo is one of the top 10 over-the-counter companies in terms of turnover in Europe, where it markets more than 200 branded OTC products in 28 countries. Visit Perrigo online at www.perrigo.com.

Perrigo forward-looking statements

Certain statements contained in this press release are “forward-looking statements”. These statements relate to future events or the future financial performance of the Company and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or the achievements of the Company or its industry are materially different from those expressed or implied by forward-looking statements. In some cases, forward-looking statements may be identified by words such as “could”, “will”, “could”, “would”, “should”, “expect”, “expect”, “plan”, “” Intend “,” believe “,” estimate “,” be on point “,” predict “,”,, “,”. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. Although the Company believes that these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including: official settlement documentation for tax settlement with Irish Revenue; the sources of funding for the settlement amount; the benefits of settling the contested valuation; and any risks or uncertainties that may arise in any challenge to the arbitral award. These and other important factors, including those discussed under “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2020, as well as subsequent filings by the Company with the United States Securities and Exchange Commission (“SEC”), may result in actual results, performance or achievements materially different from those expressed or implied by these forward-looking statements. . The forward-looking statements contained in this press release are made only as of the date hereof, and unless applicable securities laws otherwise require, the Company disclaims any intention or obligation to update or update. revise forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Perrigo Company plc

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http://www.perrigo.com


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