The Israel Tax Authority intends to demand that Teva Pharma hands over NIS $1 billion ($271 million) in retroactive tax for 2014-2015, according to sources connected to an Israeli financial publication.
Due to a tax break, Teva did not have to pay taxes in Israel for the decade preceding 2014. The tax category giving Teva those benefits was cancelled in 2014, following public criticism. Teva paid taxes in Israel for 2014-2015, but the local tax authority is seeking further payments for that period, sources told Calcalist.
The timing isn't ideal for Teva, as the drugmaker continues to sell assets, layoff workers, and close plants to ease its debts, which still total more than $27 billion, according to CEO Kare Schultz.