"After the managers got their bonuses and grants, and the company received extraordinary tax breaks, when the moment of truth comes, it fires employees. In my opinion, and in the opinion of many, this is really out of place," said State Comptroller Joseph Shapira at the ceremony marking the delivery of his annual report to the Knesset today, commenting on the layoffs at Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA).
Shapira said that it was unreasonable that while part of the population is bowed under the tax burden and high cost of living, giant companies enjoy extraordinary tax breaks, as well as trapped profits.
Shapira will publish the annual State Comptroller Report at 4 pm today. The report covers economic and social issues, including the tax breaks for corporations.
Shapira confirms the findings of the "Globes" exposé in July in the newspaper's struggle against huge corporate tax breaks under the Law for the Encouragement of Capital Investments. In 2006-11, Teva received NIS 11.8 billion in tax breaks - 70% of the NIS 16.8 billion in tax breaks awarded to public companies in this period. "Globes" also revealed that Teva pays a negligible tax rate.
Published by Globes [online], Israel business news - www.globes-online.com - on October 15, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013