Pfizer says it abides by UK accounting and tax laws and pays all due taxes

Four American multinational drug companies underpaid an estimated £124 million of tax a year in Britain, according to Oxfam.

An analysis of the accounts of Pfizer, Johnson & Johnson, Merck and Abbott by the charity found the companies appeared to be avoiding £2.9 billion a year in taxes in nine advanced economies, including the UK.

The report, Harmful Side Effects, also suggested that they may be avoiding an estimated £88 million a year of tax in seven developing countries, including Thailand, Pakistan and Colombia.

There is no suggestion of illegal activity. A spokeswoman for Pfizer said: “Pfizer abides by all accounting and tax laws wherever we do business and pays all taxes due.” A spokesman for Abbott said it was “a responsible and transparent