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Merck Pressed on Overseas Profits in Senate Tax Inquiry (1)

April 4, 2022, 7:35 PM

Merck & Co.’s finances came under Washington scrutiny as Senator Ron Wyden pressed the drugmaker on how it booked profits overseas last year while its effective tax rate dropped.

Merck paid an effective tax rate of 11% in 2021 and reported just 14% of its pretax income in the U.S., even though the country accounts for almost half the company’s sales, according to a letter Wyden sent to Merck Chief Executive Officer Rob Davis.

“It appears that the company has minimized profits in the United States while reporting substantial foreign profits to avoid paying U.S. corporate income taxes,” ...