Pfizer's Wealthiest Investors Face a Big Tax Hit After Company Moves Abroad
In a little-noticed wrinkle in Pfizer Inc.’s plan to become an overseas company after its merger with Allergan, some shareholders will face potentially huge tax bills as a result.
The so-called inversion will force stockholders to exchange the company's American-based stock for shares in the new Irish-based drug firm to be known as Pfizer plc. This means investors in the highest tax brackets will have to pay a 20 percent federal capital-gains tax as part of that process.
The so-called inversion will force stockholders to exchange the company's American-based stock for shares in the new Irish-based drug firm to be known as Pfizer plc. This means investors in the highest tax brackets will have to pay a 20 percent federal capital-gains tax as part of that process.