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Income taxes
 3 Months Ended
Mar. 31, 2022
Income taxes
NOTE 11 – Income taxes:
In the first quarter of 2022, Teva recognized a tax
expense
of $2 million, on
pre-tax
loss
 
of $971 million. In the first quarter of 2021, Teva recognized a tax expense of $62 million, on
pre-tax
income of $144 million.
Teva’s tax rate for the first quarter of 2022 was mainly affected by legal settlement charges
, adjustments to valuation allowances on deferred tax assets
and interest expense disallowances.
The statutory Israeli corporate tax rate is 23% in 2022.
Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, interest expense disallowances, tax benefits in Israel and other countries, as well as infrequent or
non-recurring
items.
Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in July 2022. A final and binding decision against Teva in this case may lead to an impairment of $138 million.
The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel.

 
 
In October 2021, the Central District Court in Israel held in favor of the Israeli tax authorities with respect to 2008-2011 decrees. The case with respect to 2012-2016 remains pending with similar legal claims. The October 2021 Central District Court decision found that Teva has a tax liability to the Israeli government for 2008-2011 of approximately $350 million, of which a portion will be paid in cash during 2022 and 2023, and the remaining portion will be offset by carried forward losses that Teva would otherwise be entitled to. Teva appealed the decision to the Israeli Supreme Court and expects the appeal hearings to start in the second half of 2022.
The Company believes it has adequately provided for all of its uncertain tax positions, including those items currently under dispute, however, adverse results could be material.