Tax Relief

Drug Cos. Urges Not Making use of Virus Tax Reduction To Opioid Deal

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“href =” https://www.law360.com/tax-authority/articles/1362008/# “> Theresa Schliep · March 5, 2021 at 7:06 pm EST

Four drug companies shouldn’t take advantage of the tax breaks provided under the pandemic legislation to maximize the tax benefits of their $ 26 billion opioid epidemic, the chair of the House Committee on Oversight and Reform said in letters released Friday.

The drug companies shouldn’t use it the settlement reduce their tax liabilities under a provision of the Coronavirus Aid, Relief and Economic Security Act This enables five year net operating loss carryforwards, Rep. Carolyn Maloney, DN.Y., said in the letters. They were delivered to Johnson & Johnson, McKesson Corp., Cardinal Health Inc., and AmerisourceBergen Corp. on Thursday. Sent to address concerns that companies might apply the net operating loss or NOL provision to the settlement.

While the NOL ruling was meant to help businesses struggling with the novel coronavirus pandemic, Cardinal Health said in a report with the U.S. Securities and Exchange Commission that it would use the stipulation to lower its tax liabilities by reducing the opioid regime to reduce. That company should reverse course while the others should provide information demonstrating their commitment not to apply the NOL determination to their opioid billing, the letters read.

– Additional coverage from Emily Field. Arrangement by Vincent Sherry.

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