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Monday, 16 February 2015
BAYER appearing poor to tax authorities
Appropriate Taxes for Multinationals!
by CBG, 15/1/2015
The chemical and pharmaceutical company BAYER has systematically moved profits to low-tax countries. The corporation thereby reduces its tax burden at the expense of taxpayers in Germany, the United States or France.
BAYER has 15 subsidiaries in the Netherlands alone. This, however, has little to do with patriotic feelings of the CEO, Marijn Dekkers. The reason is that Holland aggressively advertises its offers for saving business taxes. The use of intellectual property and trademark rights in so-called “patent boxes”, for example, is taxed at only five per cent. Thus the BAYER subsidiaries in Germany or the UK can claim the fees for something such as an Aspirin licence as a reason for tax reduction, while the fees hardly matter in terms of earnings in the Netherlands. The country is also suitable for an intercompany bank that lends money for investments to the divisions. The interest on the credits reduces taxes in Germany, but it hardly lowers the profits in Mijdrecht at BAYER WORLD INVESTMENTS B.V.
In 2012 BAYER therefore transferred shares worth 1.4 billion euros from the United States to BAYER WORLD INVESTMENTS in Holland. The subsidiary BAYER GLOBAL INVESTMENTS received 526 million euros from French divisions. Additionally, the BAYER CAPITAL CORPORATION granted loans of 1.3 billion euros in the Netherlands.