Feb 19, 2019 / The Irish Times
Medical device giant Medtronic remains “completely committed” to Ireland despite the prospect of higher taxes for having its headquarters in the State.
Medtronic moved its corporate headquarters to Ireland in 2015 after acquiring rival Covidien in a $50 billion corporate inversion – a controversial practice that saw companies move from the United States to reduce their tax bills.
However, tax reforms implemented by US president Donald Trump mean the world’s largest device maker will face higher taxes next year for its decision to base itself abroad. Medtronic expects its effective tax rate to jump from about 11 per cent at the end of its third quarter to between 16 and 17 per cent next year.
But chief executive Omar Ishrak says he remains happy with its Irish business, which employs about 4,000 people.
“I am pleased with the growth in technical and technological capability in Ireland over the time we have been here,” he said, speaking to The Irish Times.
His comments came as Medtronic beat Wall Street estimates for quarterly profit on Tuesday, driven by higher sales in its surgical products unit and restorative therapies group.