Pharmaceutical giant AstraZeneca have announced a share earnings boost, following a deal between the US and UK tax authorities with regards to the companies huge tax bill.
The agreement, which covers Astra Zeneca’s tax payments from 2000 to 2010, will see the company pay a net £690million to the respective treasuries.
Because this tax will be paid at a lower rate, share earnings are expected to increase by 50%.
This will provide a welcome boost for shareholders, and add to their delight after the firm made a whopping $11billion profit last year.
The company has announced it will pay the tax bill this year, which will also include unpaid taxes following the merger of Zeneca from the UK, and Astra from Sweden in 1999.
The company added that they had put aside more than the $1.1billion bill they had finally agreed, which has in turn boosted earnings for the first three months of the year by $500million.
The company, which employs over 67,000 all over the world has a strong base in the UK, where 11,000 people work at sites all over the county.