Italian Police Suspect Pfizer of Hiding $1.2Bln Profit to Avoid Taxes, Reports Say

WASHINGTON (Sputnik) - The Italian financial police are investigating US pharma giant Pfizer for allegedly hiding $1.2 billion in profit to avoid paying taxes in the European country, media reported, citing people familiar with the matter.

The authorities suspect Pfizer Italia Srl of diverting money to branches in the US and the Netherlands in order to evade taxes on profit that could be as high as 26%, sources said.

The investigation does not suggest that Pfizer was involved in wrongdoing, the report said. After the probe is completed, its results will be reviewed by the Italian tax authorities, who will have the final word.

"The Italian tax authorities routinely audit and investigate Pfizer taxes, and Pfizer cooperates with such audits and investigations. Pfizer complies with the tax laws and requirements of Italy," company spokesperson Pam Eisele was quoted as saying by the news agency.

Addressing the Senate, Italian Prime Minister Giorgia Meloni has recently pledged a "tough fight against tax evasion," starting with large-scale tax evaders, large companies and fraud with VAT. According to the new Italian leader, this should be a real fight against tax evasion, and not about "chasing income."