Senate Report Hits Up AbbVie’s Bermuda Tax Structure for US Humira Sales

Illinois based AbbVie Inc. The arthritis drug on sale in the U.S. makes the bulk of its profits from Humira, but the company reports almost all of its taxable income in foreign subsidiaries, according to a Senate Finance Committee report, which reports the drug company in Bermuda and Puerto. Criticizes the use of Rico to reduce its tax burden.

Democratic Staff report good details that AbbVie Biotechnology Ltd., a Bermuda-based AbbVie subsidiary with no employees or significant operations in Bermuda, owns the US intellectual property rights to Humira, one of the world’s best-selling drugs . It manufactures the drug through a branch in low-tax Puerto Rico, which is considered foreign for US tax purposes.