Modern: vaccine profits go to a beautiful tax haven …

13 July 20213 years ago babelfish

A leaked contract between Moderna and the European Commission indicates how the American company's vaccine profits will end up in some of the most protected tax havens in the world.

The contract signed with Moderna shows that it intends to receive payment for EU vaccine deliveries to Basel, Switzerland. Taking into account its profits in this low-tax jurisdiction, Moderna is likely to pay little in taxes on the billions of euros it is about to earn from the coronavirus crisis. In addition, Moderna holds many of its patents in the US tax haven of Delaware, where income from patents is exempt from tax, providing the company with an additional opportunity to avoid tax. This exacerbates the existing economic justice problems that plague the pharmaceutical industry, as the technology for these vaccines was developed using public finance and the prices at which vaccines are sold to governments around the world allow pharmaceutical companies to make huge profits. .

To give an idea of how much money Moderna has been obtained for the development of its vaccines, we recall that from the USA, by December 2020, Moderna had received 4.1 billion dollars for vaccine development, clinical trials and production. About $ 1 billion of this was granted by the Biomedical Advanced Research and Development Authority (BARDA), an agency that is part of the United States Department of Health and Human Services. Furthermore, Moderna obtained, in the USA alone, 900 million from CEPI, the world coalition for the preparation for the pandemic, all money destined for production and research, but for which there was no real reporting. All this against one of the most expensive vaccines, with a cost of $ 15 in sales to the US government and $ 22.5 in sales under the advanced contract to the EU.

So for the American company it was an exceptional deal, perhaps unique: the company obtained six billion dollars in public contributions, without the need for reporting, and on the profits made, with the prices of products set by you, it will not even pay taxes. A truly great gift for a private company.

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The Modern article : vaccine profits go to a beautiful tax haven… comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/moderna-gli-utili-dei-vaccini-se-ne-vanno-in-un-bel-paradiso-fiscale/ on Tue, 13 Jul 2021 11:15:17 +0000.