July 17, 2014

Pioneer Press: Fridley-based Medtronic refutes allegations of tax avoidance

media mention

“Medtronic officials are pushing back against widely published suggestions that the company’s proposed acquisition of Ireland-based Covidien is motivated primarily by a desire to avoid U.S. taxes…

“Tax experts and financial analysts have speculated that the inversion deal would let Medtronic invest its overseas cash in the U.S. while potentially avoiding billions in taxes. The discussion has focused on the tax treatment of about $13.9 billion in cash, cash equivalents, debt and securities that Medtronic says can be converted to cash.

“‘Multinationals are already quite adept at shifting their profits, on paper, from place to place,’ said Matt Gardner of the Institute on Taxation and Economic Policy in Washington, D.C. ‘It seems plausible that after the inversion, Medtronic will find this even easier to accomplish.'”

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