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Income taxes
 6 Months Ended
Jun. 30, 2023
Income taxes
NOTE 11 – Income taxes:
In the second quarter of 2023, Teva recognized a tax benefit of $16 million, on
a
pre-tax
loss of $914 million. In the second quarter of 2022, Teva recognized a tax benefit of $900 million, on
a
pre-tax
loss of $1,160 million. Teva’s tax rate for the second quarter of 2023 was mainly affected by
impairments, 
legal settlements, amortization, and interest expense disallowances.
In the second quarter of 2022, one of Teva’s U.S. subsidiaries was determined to be insolvent for tax purposes (i.e., its liabilities exceeded the fair market value of its assets), mainly in light of its accumulated operational losses. Consequently, Teva will recognize on its 2022 tax return, a worthless stock deduction of approximately $4.2 billion, with related tax benefit of approximately $850 million.
In the first six months of 2023, Teva recognized a tax benefit of $35 million, on
a
pre-tax
loss of $1,172 million. In the first six months of 2022, Teva recognized a tax benefit of $899 million, on
a
pre-tax
loss of $2,131 million. Teva’s tax rate for the first six months of 2023 was mainly affected by
impairments, 
legal settlements, amortization, and interest expense disallowances.
The statutory Israeli corporate tax rate is 23% in 2023. 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. A trial for this case is currently ongoing. A final and binding decision against Teva in this case may lead to a charge of $128 million.
The Israeli tax authorities (“ITA”) issued tax assessment decrees for 2008-2011, 2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2011, 2012 and 2013-2016 decrees before the Central District Court in Israel. On April 17, 2023, the ITA issued a tax assessment for 2017-2020 challenging the Company’s positions on several issues. The Company intends to challenge the tax assessment for 2017-2020 as well.
 
In October 2021, the Central District Court in Israel held in favor of the ITA with respect to the 2008-2011 decrees. The case with respect to the 2012-2016 decrees remains pending with similar legal and
othe
r claims. Teva appealed this decision to the Israeli Supreme Court and expects the appeal hearing to begin in March 2024. The tax liability resulting from the October 2021 Central District Court decision, with respect to the decrees for 2008-
2011 and the similar legal claims in the related following years, was approximately $350 million, of which a portion has been
paid in 2022 and 2023 
and will continue to be paid during 202
3
 and 202
4
.
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.