Monthly Archives: February 2011

US Green Book on IP

The US Treasury has released the 2012 Green Book (the catchier title for the “General Explanations of the Administration’s Fiscal Year 2012 Revenue Proposals” – the 2012 US Budget!). There are three key IP-oriented measures proposed. The first, discussed below, is taxation of “excess returns” on intellectual property. The second, to be discussed in a following blog post, seeks to limit shifting of income through IP transfers. Finally, and also to feature in a future post, is the enhancement and making permanent of the R&E (research and experimentation) tax credit.
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Book: Views and ideas wanted …

The 3rd edition of Taxation of Intellectual Property has been commissioned and will be appearing in all good bookstores later this year – in the meantime, I have to write it.  Let me know what you’d like to see covered – I plan to expand the international section, to add more in about specific IP-related professions/industry sectors and their tax quirks, and to add more on IP law and the interaction between practice and tax.

Anything else you’d like to see expanded/covered?  Comment on this post or email me (see the about page for contact details, I’m trying to avoid my email address being harvested by spam robots!)

OT: Pfizer withdraws R&D from UK

In the midst of discussions about the future of IP tax and incentives in the UK comes the news that Pfizer is closing its UK R&D facility at Sandwich in Kent, after about 50 years of R&D at the site. The pharma group will no longer have any UK R&D operations.

It’s part of a restructuring that will move more of Pfizer’s R&D to the US, and reduce the amount of R&D that the group does, moving away from ‘high-risk R&D’ and eliminating altogether a number of areas of R&D. That said, a move to the US does suggest that they aren’t being enticed by tax incentives, as the US incentives for R&D are not the most attractive. The project seems to reflect its description as a cost-control exercise overall, unsurprising given the group’s cuts in sales forecasts, reflecting issues such as Lipitor coming out of patent protection in November.