Walgreens will not Move its Headquarters Overseas to Avoid Taxes

By admin August 7, 2014 09:57

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Walgreens Company, the largest drug retailing chain in the United States, has announced it would keep its headquarters in the United States and not move overseas to avoid taxes.

According to the Daily Mail, in result of their announcement, Walgreens has been hammered by investors today and its stock has plunged more than 14 percent.

The pharmacy would have been able to move to Switzerland after buying Berne-based Alliance Boots. The practice, called inversion, allows companies to avoid paying U.S. taxes on foreign profits.

It also allows companies relief from the 35percent corporate tax rate, which is the highest in the industrialized world.

After Walgreens – which bills itself as ‘America’s premier pharmacy – released the news, stocks plunged to below $59 a share Wednesday – the lowest price in six months.