Seamus Coffey: No State tax windfall in Pfizer deal

Pfizer’s likely tax inversion into Ireland is unlikely to boost the country’s coffers through higher corporation tax receipts, according to a leading economist.

The US pharmaceutical company has agreed an $160bn (€150.05bn) takeover of Dublin-headquartered botox maker Allergan, which will see it move its headquarters to Ireland to avail of lower corporation tax rates in this jurisdiction.

Some commentary has suggested the State’s tax receipts could receive a multi-million euro boost as a result of Pfizer’s global profits being channelled through Ireland but UCC economics lecturer Seamus Coffey believes the deal will have little impact here.