Takeda Settles Tax Dispute With Irish Revenue Commissioners Over Break Fee Received By Shire

(RTTNews) - Takeda (TAK) said it agreed with the Irish Revenue Commissioners to settle a tax assessment related to the treatment of an acquisition break fee received by Shire plc in October 2014 from AbbVie Inc., for 130 million euros, resulting in a tax expense reduction of about JPY 63 billion for Takeda.

On November 28, 2018, Shire received a tax assessment from the Irish Revenue for 398 million euros in relation to the US$1.635 billion break fee Shire received in connection with the terminated offer by AbbVie to acquire Shire in 2014.

Takeda appealed the assessment, and in late 2020 a hearing took place before the Irish Tax Appeals Commission or TAC.

On July 30, 2021, Takeda received a ruling on the matter, with the TAC ruling in favor of Irish Revenue. While Takeda intended to appeal the TAC ruling and continued to assert that the AbbVie break fee was not subject to Irish tax, Takeda recorded a tax provision for the case in the fiscal quarter ended June 30, 20211. Subsequently, the TAC was required to rehear the matter in 2023. The re-hearing process was still ongoing when the parties reached the agreement, Takeda said in a statement.