It was a long time of seven years that was taken by US and UK to come to a common understanding about the AstraZeneca’s corporation tax.

The drug making firm is of the view that the first challenge was to change the potential transatlantic double taxation in the year 2004 and shall have to pay a huge sum to the US cover for the tax cover of the past ten years.

By reducing a slightly less alarming sum from the tax liabilities of the UK, AstraZeneca accounts to a sum of $1.1bn. It shall also mean a benefit of about £500m from the amount spent on provisions. There are two conclusions that can be inferred from the above statistics.

The first one is that the shares of the firm are slightly more valuable than what they used to be, or that the internal revenue service has come up as a winner against the queen’s tax inspectors.

As of last week, there was an announcement made by George Osborne about the plan to bring the UK corporation tax levels to as low as 23%