Teva Pharmaceutical Industries Ltd 8-K, filed Jun 25, 2024
Teva Pharmaceutical Industries Ltd (TEVA)
About this 8-K
Teva Pharmaceutical Industries Ltd filed this 8-K on June 25, 2024, reporting on events of June 23, 2024.
Items reported
- Item 1.01: Entered into a material agreement
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| Item 1.01 | Entry into a Material Definitive Agreement |
As previously disclosed, Teva Pharmaceutical Industries Limited (the “Company”) has been engaged in litigation with the Israeli Tax Authorities (the “ITA”) regarding taxes payable in Israel for certain historical taxable years. On June 23, 2024, the Company entered into an agreement with the ITA to settle certain litigation with respect to taxes payable for the Company’s taxable years 2008 through 2020 (the “Agreement”). Pursuant to the terms of the Agreement, the Company will pay a total amount of approximately $750 million to the ITA spread over years 2024 through 2029. The Company has the right to prepay, and amounts paid over time are subject to interest and increase for inflation. Such total amount includes: (i) approximately $500 million in corporate taxes with respect to the Company’s historical earnings that were previously considered by the Company to be exempt from taxes under the Encouragement for Capital Investment Law; and (ii) approximately $250 million in corporate taxes, relating to additional disputed tax issues in the aforementioned taxable years.
Additionally, under the terms of the Agreement, it was further agreed that in the future event the Company pays dividends on, or repurchases, its equity interests, the Company will pay an additional 5%-7% of the amount of such dividends or repurchases in corporate taxes, up to a maximum tax payment amount of approximately $500 million.
The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the English summary of the Agreement, which will be filed with the Company’s Form 10-Q for the quarter ending June 30, 2024.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
| Date: June 25, 2024 | By: | /s/ Eli Kalif | ||||
| Name: | Eli Kalif | |||||
| Title: | Executive Vice President, Chief Financial Officer | |||||