"The time has come to change the rules of the game on tax benefits."
Minister of Finance Yair Lapid held a meeting with Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) CEO Jeremy Levin on Friday, against the background of plans to raise the rate of tax paid by the pharmaceutical giant. Lapid said in the meeting that "the time has come to change the rules of the game on trapped profits and tax benefits." Lapid and Levin agreed to enter into intensive negotiations on these changes.
This follows an expose by "Globes" showing that Teva received tax breaks from the State of Israel in 2011 amounting to NIS 3 billion, the largest tax break ever received by a single company in Israel.
In addition, a report by the State Revenues Administration published by the Ministry of Finance last week shows that Teva, Intel, Israel Chemicals Ltd. (TASE: ICL) and Check Point Software Technologies Ltd. (Nasdaq: CHKP) received tax breaks totaling NIS 3.88 billion in 2010, about 70% of the total tax benefits granted that year under the Law for the Encouragement of Capital Investment.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2013
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