[sheet: IDR Master Log]
IDR No. | Date Issued | IRS Issuer | Description / Subject Matter | Due Date | Extension Requested | Extended Due Date | Response Date | C&H Preparer | C&H Reviewer | Documents Produced | Bates Range | Privilege Objections | Scope Objection | Status | Notes
1 | 2022-06-22 | Patricia Dunleavy | Corporate structure and organizational charts — PPC, PHL, PBI, PMI; entity ownership diagrams; jurisdictions of incorporation | 2022-07-08 | No | 2022-07-08 | Leila Nazari | Garrett Simmons | 18 documents — org charts, certificates of incorporation, ownership diagrams for PPC → PHL → PBI → PMI structure | PPC-IDR001-0001 to PPC-IDR001-0018 | No | No | Completed | Response filed as IDR-01-response.docx; addressed to RA Dunleavy
2 | 2022-06-29 | Patricia Dunleavy | Cost-Sharing Arrangement agreement effective July 1, 2012 and all amendments; PCT payment documentation ($312M) | 2022-07-15 | No | 2022-07-15 | Garrett Simmons | Leonard Cross | 24 documents — CSA agreement, 3 amendments, PCT valuation memo, wire transfer records for $312M payment | PPC-IDR002-0001 to PPC-IDR002-0024 | No | No | Completed | CSA effective date July 1, 2012; PCT lump sum $312,000,000 paid by PBI to PPC
3 | 2022-07-06 | Patricia Dunleavy | Legacy IP license agreement between PPC and PBI — pre-2012 compounds; royalty rate terms (4.5% of net sales, non-Americas territory) | 2022-07-22 | No | 2022-07-22 | Garrett Simmons | Leonard Cross | 8 documents — license agreement, schedules of legacy compounds, royalty calculation workpapers | PPC-IDR003-0001 to PPC-IDR003-0008 | No | No | Completed | Royalty rate: 4.5% of net sales for non-Americas territory
4 | 2022-07-13 | Patricia Dunleavy | Contemporaneous transfer pricing documentation prepared under IRC § 6662(e) for TY 2017, 2018, 2019, 2020 | 2022-08-01 | No | 2022-08-01 | Garrett Simmons | Leonard Cross | 42 documents — Crestfield-prepared TP documentation for all 4 years, including economic analyses and benchmarking | PPC-IDR004-0001 to PPC-IDR004-0042 | No | No | Completed | Documentation originally prepared by Crestfield & Associates LLP (Susan Lam, TP Partner)
5 | 2022-07-20 | Patricia Dunleavy | PCT valuation report and all supporting workpapers, including revenue projections, discount rate analysis, and DCF model used to determine $312M payment | 2022-08-10 | No | 2022-08-10 | Garrett Simmons | Leonard Cross | 31 documents — original PCT valuation, DCF models, revenue projections, WACC build-up | PPC-IDR005-0001 to PPC-IDR005-0031 | Yes | No | Completed | Some workpapers withheld on attorney-client privilege (legal analysis of PCT methodology); logged on privilege log
6 | 2022-07-27 | Patricia Dunleavy | R&D cost pool composition and allocation methodology for TY 2017–2020; qualified R&D costs: $487.3M (2017), $523.8M (2018), $561.2M (2019), $598.4M (2020) | 2022-08-18 | No | 2022-08-18 | Leila Nazari | Garrett Simmons | 36 documents — cost pool breakdowns by category, allocation worksheets, cost-sharing percentages (38.2%, 39.6%, 41.1%, 42.7%) | PPC-IDR006-0001 to PPC-IDR006-0036 | No | No | Completed | PBI cost-share percentages: 38.2% (2017), 39.6% (2018), 41.1% (2019), 42.7% (2020)
7 | 2022-08-03 | Patricia Dunleavy | PBI financial statements (Irish statutory accounts) and Irish tax returns for TY 2017, 2018, 2019, 2020; PBI Irish Tax Reference 3218764T | 2022-08-25 | No | 2022-08-25 | Leila Nazari | Garrett Simmons | 28 documents — PBI audited accounts, CT1 returns, Knowledge Development box claims (6.25% rate), €2.14B revenue (2020), €1.06B pre-tax income (2020) | PPC-IDR007-0001 to PPC-IDR007-0028 | No | No | Completed | Coordinated with Thornbury & Keogh (Ciarán Thornbury) for Irish filings
8 | 2022-08-10 | Patricia Dunleavy | PBI personnel and headcount data — org charts, employee counts (2012: 52 → 2020: 185), role descriptions, managing director (Aidan Naughton) responsibilities | 2022-09-05 | No | 2022-09-05 | Leila Nazari | Garrett Simmons | 22 documents — headcount schedules, org charts by year, employment contracts for senior staff, Naughton role description | PPC-IDR008-0001 to PPC-IDR008-0022 | No | No | Completed | PBI headcount growth: 52 (2012) to 185 (2020)
9 | 2022-08-17 | Patricia Dunleavy | PBI board minutes and governance documents — articles of association, board resolutions, meeting minutes (42 meetings, 2017–2020), all held in Dublin | 2022-09-12 | No | 2022-09-12 | Leila Nazari | Leonard Cross | 48 documents — articles of association, 42 board meeting minutes (quarterly + special sessions, all in Dublin), director registers | PPC-IDR009-0001 to PPC-IDR009-0048 | No | No | Completed | 42 board meetings across 2017–2020; all held at PBI registered office, Sandyford Business Park, Dublin
10 | 2022-08-24 | Patricia Dunleavy | Intercompany manufacturing agreement between PBI and Penterra Manufacturing Ireland Ltd. (PMI) — cost-plus 8% arrangement, CRO No. 512347 | 2022-09-20 | No | 2022-09-20 | Leila Nazari | Garrett Simmons | 12 documents — manufacturing services agreement, pricing schedules, cost-plus calculation worksheets (cost + 8% markup) | PPC-IDR010-0001 to PPC-IDR010-0012 | No | No | Completed | PMI: 620 employees, Ringaskiddy, Co. Cork; contract manufacturing of oncology and immunology biologics
11 | 2022-09-01 | Patricia Dunleavy | Product revenue data by territory (Americas vs. non-Americas) for Veritaxol, Imvara, and Cerulon — TY 2017–2020 | 2022-10-03 | No | 2022-10-03 | Garrett Simmons | Leonard Cross | 16 documents — revenue schedules by product and territory; Veritaxol non-Americas $1.34B (2020), Imvara $790M, Cerulon $280M | PPC-IDR011-0001 to PPC-IDR011-0016 | No | No | Completed | Key 2020 data: Veritaxol global $3.12B; Imvara global $1.87B; Cerulon global $620M
12 | 2022-09-08 | Patricia Dunleavy | PBI office lease and physical presence documentation — ~18,000 sq ft, 4th Floor, Claremont House, Sandyford Business Park, Dublin D18 K7T4 | 2022-10-12 | No | 2022-10-12 | Leila Nazari | Garrett Simmons | 9 documents — commercial lease agreement, floor plans, utility bills, property photos | PPC-IDR012-0001 to PPC-IDR012-0009 | No | No | Completed | PBI maintains ~18,000 sq ft office at Sandyford Business Park
13 | 2022-09-15 | Patricia Dunleavy | Intercompany service agreements — management services, shared services, IT support between PPC and PBI/PHL/PMI | 2022-10-15 | No | 2022-10-15 | Leila Nazari | Garrett Simmons | 14 documents — service agreements, fee schedules, allocation keys | PPC-IDR013-0001 to PPC-IDR013-0014 | No | No | Completed
14 | 2022-09-22 | Patricia Dunleavy | Intercompany service fee calculations and invoices — TY 2017–2020; detailed allocation methodology | 2022-10-22 | Yes | 2022-11-21 | 2022-11-18 | Leila Nazari | Garrett Simmons | 26 documents — service fee invoices, allocation workpapers, methodology documentation | PPC-IDR014-0001 to PPC-IDR014-0026 | No | No | Completed | 30-day extension requested per letter dated Sept. 20, 2022 (Simmons to Dunleavy); granted
15 | 2022-09-29 | Patricia Dunleavy | Regulatory expenditures and submissions by PBI in non-Americas territories — cumulative €47.2M (2017–2020) across 68 country markets | 2022-11-08 | No | 2022-11-08 | Leila Nazari | Garrett Simmons | 34 documents — regulatory submission records, expenditure summaries by market, approval certificates | PPC-IDR015-0001 to PPC-IDR015-0034 | No | No | Completed | €47.2M cumulative regulatory spend; 68 country markets with independent pricing decisions
16 | 2022-10-06 | Patricia Dunleavy | PPC consolidated Forms 1120 and supporting schedules for TY 2017, 2018, 2019, 2020 | 2022-11-06 | No | 2022-11-04 | Garrett Simmons | Leonard Cross | 20 documents — Forms 1120, Schedule M-3, international schedules, Form 8865 workpapers | PPC-IDR016-0001 to PPC-IDR016-0020 | No | No | Completed | PPC EIN 22-3741856; fiscal year-end December 31
17 | 2022-10-13 | Patricia Dunleavy | PPC R&D expenditure detail — laboratory costs, clinical trial costs, personnel costs allocated to qualified R&D cost pool | 2022-11-13 | No | 2022-11-10 | Garrett Simmons | Garrett Simmons | 18 documents — R&D cost breakdowns by category, clinical trial expense reports, labor allocation schedules | PPC-IDR017-0001 to PPC-IDR017-0018 | No | No | Completed
18 | 2022-10-20 | Patricia Dunleavy | Third-party distribution agreements for non-Americas territories — PBI distribution partner contracts demonstrating independent commercial decision-making | 2022-12-05 | No | 2022-12-05 | Leila Nazari | Leonard Cross | 42 documents — distribution agreements across EMEA and APAC, partner selection criteria memos, pricing approval records | PPC-IDR018-0001 to PPC-IDR018-0042 | Yes | No | Completed | Some commercially sensitive third-party terms redacted; privilege log updated
19 | 2022-10-27 | Patricia Dunleavy | PBI marketing and commercial strategy documents — market entry analyses, competitive positioning, pricing strategies for non-Americas | 2022-12-12 | No | 2022-12-09 | Leila Nazari | Garrett Simmons | 28 documents — market strategy presentations, launch plans, pricing committee minutes | PPC-IDR019-0001 to PPC-IDR019-0028 | No | No | Completed
20 | 2022-11-03 | Patricia Dunleavy | PPC and PBI intercompany invoices and payment records — royalties, cost-sharing payments, service fees — TY 2017–2020 | 2022-12-19 | No | 2022-12-16 | Garrett Simmons | Garrett Simmons | 38 documents — royalty invoices ($36.66M, $34.30M, $31.13M, $28.08M), cost-sharing payment confirmations, wire transfer records | PPC-IDR020-0001 to PPC-IDR020-0038 | No | No | Completed | Royalty payments at 4.5%: $36.66M (2017), $34.30M (2018), $31.13M (2019), $28.08M (2020)
21 | 2022-11-10 | Patricia Dunleavy | PBI treasury and cash management records — independent treasury operations, intercompany loans, dividend payments | 2023-01-10 | No | 2023-01-06 | Leila Nazari | Garrett Simmons | 15 documents — treasury policy, intercompany loan agreements, dividend payment records | PPC-IDR021-0001 to PPC-IDR021-0015 | No | No | Completed
22 | 2022-11-17 | Patricia Dunleavy | Banking records — PBI Glenmore Bank Ireland plc account statements, signatory authorities, transaction records TY 2017–2020 | 2023-01-20 | No | 2023-01-20 | Leila Nazari | Garrett Simmons | 24 documents — Glenmore Bank monthly statements, authorized signatory lists, transaction summaries | PPC-IDR022-0001 to PPC-IDR022-0024 | No | No | Completed | PBI's principal Irish bank: Glenmore Bank Ireland plc; demonstrates independent treasury
23 | 2022-12-01 | Patricia Dunleavy | PPC internal audit reports related to transfer pricing compliance and intercompany transactions — TY 2017–2020 | 2023-01-30 | No | 2023-01-27 | Garrett Simmons | Leonard Cross | 6 documents — internal audit reports (redacted for attorney-client communications) | PPC-IDR023-0001 to PPC-IDR023-0006 | Yes | No | Completed | Certain communications withheld; logged on privilege log
24 | 2022-12-08 | Patricia Dunleavy | PPC Audit Committee materials related to transfer pricing risk assessment and FIN 48 / ASC 740-10 reserves | 2023-02-08 | No | 2023-02-06 | Garrett Simmons | Leonard Cross | 10 documents — Audit Committee presentations (redacted), reserve analyses | PPC-IDR024-0001 to PPC-IDR024-0010 | Yes | No | Completed | Attorney-client privileged portions withheld; FIN 48 reserve: $62.4M pre-settlement
25 | 2022-12-15 | Patricia Dunleavy / Dr. Alan Washburne | Comparable license agreements — CUT support data; third-party pharmaceutical IP license agreements used in PPC's arm's-length analysis | 2023-02-15 | No | 2023-02-15 | Garrett Simmons | Leonard Cross | 14 documents — redacted third-party license agreements identified as CUT comparables; IQR 3.1%–6.8%, median 4.4% | PPC-IDR025-0001 to PPC-IDR025-0014 | No | No | Completed | 14 CUT comparable agreements identified by Whitmore Valuation Group; interquartile range 3.1%–6.8%
26 | 2023-01-05 | Patricia Dunleavy / Dr. Alan Washburne | All economic analyses, benchmarking studies, and expert reports prepared in connection with PPC's transfer pricing positions — TY 2017–2020 | 2023-02-05 | No | No | Yes | Objected — Narrowed | C&H objected to scope as overly broad and unduly burdensome per letter dated Feb. 15, 2023 (Cross to Dunleavy); IRS narrowed to specific categories; partial response provided under IDR 26A
27 | 2023-01-19 | Patricia Dunleavy | PPC Forms 5471 — Information Return of U.S. Persons with Respect to Certain Foreign Corporations (PBI and PHL) — TY 2017–2020 | 2023-02-19 | No | 2023-02-19 | Leila Nazari | Garrett Simmons | 8 documents — Forms 5471 for PBI and PHL for each year | PPC-IDR027-0001 to PPC-IDR027-0008 | No | No | Completed | PHL: Luxembourg RCS Number B 168452; disregarded entity for U.S. federal tax purposes
28 | 2023-01-26 | Patricia Dunleavy | PBI employee compensation data — salary, bonus, equity compensation for senior management and key functional personnel — TY 2017–2020 | 2023-02-26 | No | 2023-02-24 | Leila Nazari | Garrett Simmons | 12 documents — anonymized compensation schedules, equity grant summaries, employment cost analyses | PPC-IDR028-0001 to PPC-IDR028-0012 | No | No | Completed
29 | 2023-02-09 | Patricia Dunleavy | PBI supply chain management documentation — vendor contracts, logistics agreements, inventory management for non-Americas operations | 2023-03-09 | No | 2023-03-08 | Leila Nazari | Garrett Simmons | 20 documents — supply chain contracts, logistics provider agreements, inventory reports | PPC-IDR029-0001 to PPC-IDR029-0020 | No | No | Completed
30 | 2023-02-23 | Patricia Dunleavy | Knowledge Development box claims — PBI filings with Irish Revenue at 6.25% effective rate on qualifying IP income; supporting calculations FY 2016–2020 | 2023-04-10 | No | 2023-04-10 | Leila Nazari | Garrett Simmons | 16 documents — KDB claim forms, qualifying income calculations, Irish Revenue correspondence | PPC-IDR030-0001 to PPC-IDR030-0016 | No | No | Completed | Irish Knowledge Development box rate: 6.25% on qualifying IP income from FY 2016 forward; Irish standard trading rate: 12.5%
31 | 2023-03-02 | Dr. Alan Washburne | Revenue projections used to determine reasonably anticipated benefits under the CSA — original projections vs. actual results, TY 2012–2020 | 2023-04-17 | No | 2023-04-14 | Garrett Simmons | Leonard Cross | 22 documents — revenue forecast models, projection vs. actual reconciliations, RAB share calculations | PPC-IDR031-0001 to PPC-IDR031-0022 | No | No | Completed | Supports defense of PBI cost-share percentages based on reasonably anticipated benefits
32 | 2023-03-16 | Dr. Alan Washburne | Discount rate / WACC analysis used in PCT valuation — PPC's 9.8% WACC vs. alternative rate assumptions | 2023-04-30 | No | 2023-04-28 | Garrett Simmons | Leonard Cross | 8 documents — WACC build-up workpapers, beta comparables, risk premium analyses | PPC-IDR032-0001 to PPC-IDR032-0008 | Yes | No | Completed | PPC/C&H WACC: 9.8%; IRS used 7.2% in its income-method PCT valuation
33 | 2023-03-30 | Patricia Dunleavy | PPC IP portfolio inventory — list of all patents, trademarks, and know-how transferred or made available under CSA and legacy license | 2023-05-01 | No | 2023-04-28 | Leila Nazari | Garrett Simmons | 14 documents — IP registers, patent schedules, trademark listings, know-how descriptions | PPC-IDR033-0001 to PPC-IDR033-0014 | No | No | Completed
34 | 2023-04-13 | Patricia Dunleavy | PBI medical affairs activities — medical science liaison team, key opinion leader engagement, clinical data management for non-Americas | 2023-05-15 | No | 2023-05-12 | Leila Nazari | Garrett Simmons | 10 documents — MSL team reports, KOL engagement records, clinical data management protocols | PPC-IDR034-0001 to PPC-IDR034-0010 | No | No | Completed
35 | 2023-04-27 | Patricia Dunleavy | Intercompany pricing decisions and market strategy documents — PBI's independent pricing across 68 non-Americas markets | 2023-06-02 | No | 2023-06-02 | Leila Nazari | Leonard Cross | 32 documents — pricing approval memos, market-by-market pricing analyses, competitive intelligence reports | PPC-IDR035-0001 to PPC-IDR035-0032 | No | No | Completed | Demonstrates PBI's independent DEMPE functions — Exploitation across 68 country markets
36 | 2023-05-11 | Dr. Alan Washburne | Comparable company financial data used in CPM/TNMM analysis — 22 comparables, operating margin calculations | 2023-06-12 | No | 2023-06-09 | Garrett Simmons | Leonard Cross | 22 documents — comparable company profiles, financial data extracts, margin calculations | PPC-IDR036-0001 to PPC-IDR036-0022 | No | No | Completed | 22 CPM/TNMM comparable companies; PBI margins within IQR all 4 years
37 | 2023-05-25 | Patricia Dunleavy | PPC travel records — U.S.-to-Ireland and Ireland-to-U.S. travel by PPC and PBI personnel, TY 2017–2020 | 2023-06-26 | No | 2023-06-23 | Leila Nazari | Garrett Simmons | 8 documents — travel logs, expense reports, trip summaries | PPC-IDR037-0001 to PPC-IDR037-0008 | No | No | Completed
38 | 2023-06-08 | Patricia Dunleavy | PPC executive committee and management committee minutes referencing PBI, non-Americas strategy, or transfer pricing — TY 2017–2020 | 2023-07-10 | No | 2023-07-07 | Garrett Simmons | Leonard Cross | 18 documents — executive committee minutes (redacted for privilege), management committee minutes | PPC-IDR038-0001 to PPC-IDR038-0018 | Yes | No | Completed | Certain strategic legal discussions withheld on attorney-client privilege
39 | 2023-06-22 | Dr. Alan Washburne | Sensitivity analyses — impact of alternative discount rates and revenue projections on PCT valuation and CSA cost-sharing ratios | 2023-07-24 | No | 2023-07-21 | Garrett Simmons | Leonard Cross | 6 documents — sensitivity tables, scenario analyses, alternative WACC models | PPC-IDR039-0001 to PPC-IDR039-0006 | Yes | No | Completed | Partial withholding of attorney work product; logged
40 | 2023-07-06 | Patricia Dunleavy | Forms 5471 and international informational returns — PBI and PHL, TY 2017–2020 (supplemental to IDR 27) | 2023-07-28 | No | 2023-07-18 | Leila Nazari | Garrett Simmons | 12 documents — additional Form 5471 schedules, Schedule J, Schedule H, previously omitted attachments | PPC-IDR040-0001 to PPC-IDR040-0012 | No | No | Completed | Supplemental to IDR 27; included PHL (Luxembourg RCS B 168452) — disregarded entity
41 | 2023-07-13 | Patricia Dunleavy | PBI insurance policies — directors & officers, professional liability, property — demonstrating independent risk assumption | 2023-08-14 | No | 2023-08-11 | Leila Nazari | Garrett Simmons | 6 documents — D&O policy, professional liability policy, property insurance declarations | PPC-IDR041-0001 to PPC-IDR041-0006 | No | No | Completed
42 | 2023-07-20 | Dr. Alan Washburne | Product lifecycle and pipeline analyses — clinical stage compounds, projected revenue streams for CSA-covered IP | 2023-08-21 | No | 2023-08-18 | Garrett Simmons | Leonard Cross | 10 documents — pipeline presentations, clinical development timelines, revenue projection models | PPC-IDR042-0001 to PPC-IDR042-0010 | No | No | Completed
43 | 2023-07-27 | Patricia Dunleavy | PBI IT infrastructure and systems — evidence of independent technology platform, ERP systems, data management | 2023-08-28 | No | 2023-08-25 | Leila Nazari | Garrett Simmons | 8 documents — IT infrastructure diagrams, ERP license agreements, data center contracts | PPC-IDR043-0001 to PPC-IDR043-0008 | No | No | Completed
44 | 2023-08-03 | Patricia Dunleavy | PBI capital expenditure and investment records — equipment purchases, IT investments, facility improvements, TY 2017–2020 | 2023-08-28 | No | 2023-08-22 | Leila Nazari | Garrett Simmons | 14 documents — capex schedules, purchase orders, asset registers, facility improvement records | PPC-IDR044-0001 to PPC-IDR044-0014 | No | No | Completed
45 | 2023-08-17 | Patricia Dunleavy | Legacy compound net sales data (non-Americas) — detailed by product for TY 2017–2020; $814.6M, $762.3M, $691.8M, $624.1M | 2023-09-11 | No | 2023-09-08 | Garrett Simmons | Garrett Simmons | 8 documents — legacy product revenue schedules by compound and territory | PPC-IDR045-0001 to PPC-IDR045-0008 | No | No | Completed | Non-Americas legacy net sales declining: $814.6M (2017) → $624.1M (2020)
46 | 2023-08-31 | Patricia Dunleavy / Dr. Alan Washburne | PBI profit split data and segmented P&L by product line — non-Americas, TY 2017–2020 | 2023-09-22 | No | 2023-09-20 | Garrett Simmons | Leonard Cross | 12 documents — segmented income statements, profit split calculations, contribution analyses | PPC-IDR046-0001 to PPC-IDR046-0012 | No | No | Completed
47 | 2023-09-14 | Patricia Dunleavy | Supplemental documentation — additional employee compensation data, travel records, PBI board attendance records (final IDR) | 2023-09-29 | No | 2023-09-29 | Leila Nazari | Garrett Simmons | 16 documents — supplemental compensation schedules, travel itineraries, board attendance logs | PPC-IDR047-0001 to PPC-IDR047-0016 | No | No | Completed | Final IDR; response filed as IDR-47-response.docx
SUMMARY | TOTALS — 47 IDRs Issued (June 22, 2022 – September 14, 2023) | Extensions: 1 | Total Documents Produced: 751 | Privilege Objections: 6 | Scope Objections: 1 | Completed: 46; Objected-Narrowed: 1 | Matter No. 1018-00009 — Penterra Pharmaceuticals Corp. (EIN 22-3741856)
[sheet: IDR 26 — Narrowed Scope]
Sub-IDR Reference | Original Scope | Objection Date | Objection Letter Reference | Narrowed Scope Description | Revised Due Date | Response Date | C&H Preparer | C&H Reviewer | Documents Produced | Bates Range | Status | Notes
IDR 26A | All economic analyses, benchmarking studies, and expert reports prepared in connection with PPC's transfer pricing positions — TY 2017–2020 | 2023-02-15 | Letter — Cross to Dunleavy, Feb. 15, 2023 (scope objection) | Narrowed to: (i) benchmarking search criteria and screening methodology, (ii) final comparable company/transaction lists, (iii) quantitative results of CUT and CPM analyses — excludes privileged attorney-directed expert work product | 2023-03-20 | 2023-03-17 | Garrett Simmons | Leonard Cross | 18 documents — search criteria documentation, comparable lists, quantitative results (CUT IQR 3.1%–6.8%; CPM/TNMM 22 comparables) | PPC-IDR026A-0001 to PPC-IDR026A-0018 | Completed | Original scope objected; IRS agreed to narrow per C&H letter; Kovel-protected analyses withheld
[sheet: Summary Statistics]
Metric | Value
Client | Penterra Pharmaceuticals Corp. (EIN 22-3741856)
Matter Number | 1018-00009
IRS Exam Team ID | LB&I-NE-TP-2022-00641
Tax Years Under Examination | 2017, 2018, 2019, 2020
Lead Revenue Agent | Patricia Dunleavy
Supervisory Revenue Agent / Team Manager | Gerald Meskill
IRS Economist | Dr. Alan Washburne
Total IDRs Issued | 47
IDR Period | June 22, 2022 – September 14, 2023
IDRs Completed | 46
IDRs Objected / Narrowed | 1 (IDR 26)
IDRs Withdrawn by IRS | 0
Extensions Requested | 1 (IDR 14)
IDRs with Privilege Withholdings | 6 (IDRs 5, 18, 23, 24, 38, 39)
IDRs with Scope Objections | 1 (IDR 26)
Total Documents Produced | 751 (across all IDRs including IDR 26A)
Bates Number Range | PPC-IDR001-0001 through PPC-IDR047-0016
C&H Primary Preparers | Garrett Simmons (Lead Associate), Leila Nazari (Working Associate)
C&H Primary Reviewers | Leonard Cross (Responsible Partner), Garrett Simmons
Key Third-Party Coordination | Crestfield & Associates LLP (Susan Lam — TP documentation); Thornbury & Keogh (Ciarán Thornbury — Irish filings)
Examination Opened | May 16, 2022
NOPA Issued | October 12, 2023
Net Proposed Adjustment | $380,400,000
Examination Closed | March 29, 2024 (Form 906 Closing Agreement)
Settlement Amount | $47,600,000 (12.51% of proposed)
[sheet: Privilege Log Cross-Reference]
IDR No. | IDR Description | Documents Withheld | Privilege Basis | Brief Description of Withheld Documents | Privilege Log Reference | Notes
5 | PCT valuation report and supporting workpapers | 3 | Attorney-Client | Legal analysis memoranda regarding PCT methodology and arm's-length characterization | Priv. Log Entries 001–003 | Prepared by C&H attorneys; directed legal analysis of PCT valuation approach
18 | Third-party distribution agreements (non-Americas) | 2 | Both | Attorney-drafted strategy memos regarding distribution partner selection; commercially sensitive redactions | Priv. Log Entries 004–005 | Partial redactions of commercially sensitive terms
23 | Internal audit reports — transfer pricing compliance | 4 | Attorney-Client | Internal audit communications reflecting legal advice on TP compliance | Priv. Log Entries 006–009
24 | Audit Committee materials — FIN 48 / ASC 740-10 reserves | 5 | Both | Audit Committee presentations containing attorney analysis of uncertain tax positions; FIN 48 reserve ($62.4M) legal assessment | Priv. Log Entries 010–014 | FIN 48 reserve analysis prepared with C&H legal input
38 | Executive committee minutes referencing PBI / transfer pricing | 4 | Attorney-Client | Portions of executive committee minutes reflecting privileged legal discussions regarding transfer pricing strategy | Priv. Log Entries 015–018 | Redacted privileged portions; non-privileged business discussions produced
39 | Sensitivity analyses — Discount rates and revenue projections | 2 | Work Product | Attorney-directed sensitivity analyses prepared in anticipation of litigation / controversy proceedings | Priv. Log Entries 019–020 | Work product prepared under Kovel arrangement with Whitmore Valuation Group
TOTAL | 20 | Priv. Log Entries 001–020 | Total of 20 documents withheld across 6 IDRs
[sheet: Timeline View]
Date | Event Type | IDR No. | Description | Responsible Party
2022-05-16 | Milestone | IRS examination opened — Letter 2205-A issued to PPC | IRS
2022-06-02 | Milestone | C&H engagement letter executed | C&H / PPC
2022-06-08 | Milestone | IRS Form 2848 (Power of Attorney) filed — Cross, Hartwell, Simmons, Nazari | C&H
2022-06-20 | Milestone | Kovel letter executed — Whitmore Valuation Group LLC (Dr. Helena Vasquez) | C&H
2022-06-22 | IDR Issued | 1 | Corporate structure and organizational charts | IRS
2022-06-28 | Milestone | IRS opening conference — Meskill, Dunleavy, Cross, Simmons, Whitfield | IRS / C&H / PPC
2022-06-29 | IDR Issued | 2 | Cost-Sharing Arrangement agreement and PCT payment documentation ($312M) | IRS
2022-07-06 | IDR Issued | 3 | Legacy IP license agreement — royalty rate terms (4.5%) | IRS
2022-07-08 | IDR Response | 1 | Response to IDR 1 — 18 documents produced | C&H
2022-07-13 | IDR Issued | 4 | Contemporaneous transfer pricing documentation TY 2017–2020 | IRS
2022-07-15 | IDR Response | 2 | Response to IDR 2 — 24 documents produced | C&H
2022-07-20 | IDR Issued | 5 | PCT valuation report and supporting workpapers | IRS
2022-07-22 | IDR Response | 3 | Response to IDR 3 — 8 documents produced | C&H
2022-07-27 | IDR Issued | 6 | R&D cost pool composition and allocation methodology | IRS
2022-08-01 | IDR Response | 4 | Response to IDR 4 — 42 documents produced | C&H
2022-08-03 | IDR Issued | 7 | PBI financial statements and Irish tax returns | IRS
2022-08-10 | IDR Issued | 8 | PBI personnel and headcount data | IRS
2022-08-10 | IDR Response | 5 | Response to IDR 5 — 31 documents produced | C&H
2022-08-17 | IDR Issued | 9 | PBI board minutes and governance documents | IRS
2022-08-18 | IDR Response | 6 | Response to IDR 6 — 36 documents produced | C&H
2022-08-24 | IDR Issued | 10 | Intercompany manufacturing agreement PBI-PMI | IRS
2022-08-25 | IDR Response | 7 | Response to IDR 7 — 28 documents produced | C&H
2022-09-01 | IDR Issued | 11 | Product revenue data by territory — Veritaxol, Imvara, Cerulon | IRS
2022-09-05 | IDR Response | 8 | Response to IDR 8 — 22 documents produced | C&H
2022-09-08 | IDR Issued | 12 | PBI office lease and physical presence documentation | IRS
2022-09-12 | IDR Response | 9 | Response to IDR 9 — 48 documents produced | C&H
2022-09-15 | IDR Issued | 13 | Intercompany service agreements — PPC, PBI, PHL, PMI | IRS
2022-09-20 | IDR Response | 10 | Response to IDR 10 — 12 documents produced | C&H
2022-09-20 | Extension | 14 | 30-day extension requested for IDR 14 (Simmons to Dunleavy) | C&H
2022-09-22 | IDR Issued | 14 | Intercompany service fee calculations and invoices | IRS
2022-09-29 | IDR Issued | 15 | Regulatory expenditures and submissions by PBI | IRS
2022-10-03 | IDR Response | 11 | Response to IDR 11 — 16 documents produced | C&H
2022-10-06 | IDR Issued | 16 | PPC consolidated Forms 1120 and supporting schedules | IRS
2022-10-12 | IDR Response | 12 | Response to IDR 12 — 9 documents produced | C&H
2022-10-13 | IDR Issued | 17 | PPC R&D expenditure detail | IRS
2022-10-15 | IDR Response | 13 | Response to IDR 13 — 14 documents produced | C&H
2022-10-20 | IDR Issued | 18 | Third-party distribution agreements for non-Americas | IRS
2022-10-27 | IDR Issued | 19 | PBI marketing and commercial strategy documents | IRS
2022-11-03 | IDR Issued | 20 | PPC and PBI intercompany invoices and payment records | IRS
2022-11-04 | IDR Response | 16 | Response to IDR 16 — 20 documents produced | C&H
2022-11-08 | IDR Response | 15 | Response to IDR 15 — 34 documents produced | C&H
2022-11-10 | IDR Issued | 21 | PBI treasury and cash management records | IRS
2022-11-10 | IDR Response | 17 | Response to IDR 17 — 18 documents produced | C&H
2022-11-17 | IDR Issued | 22 | Banking records — PBI Glenmore Bank Ireland plc | IRS
2022-11-18 | IDR Response | 14 | Response to IDR 14 — 26 documents produced (after extension) | C&H
2022-12-01 | IDR Issued | 23 | PPC internal audit reports — transfer pricing compliance | IRS
2022-12-05 | IDR Response | 18 | Response to IDR 18 — 42 documents produced | C&H
2022-12-08 | IDR Issued | 24 | PPC Audit Committee materials — FIN 48 / ASC 740-10 | IRS
2022-12-09 | IDR Response | 19 | Response to IDR 19 — 28 documents produced | C&H
2022-12-15 | IDR Issued | 25 | Comparable license agreements — CUT support data | IRS
2022-12-16 | IDR Response | 20 | Response to IDR 20 — 38 documents produced | C&H
2023-01-05 | IDR Issued | 26 | All economic analyses, benchmarking studies, expert reports | IRS
2023-01-06 | IDR Response | 21 | Response to IDR 21 — 15 documents produced | C&H
2023-01-19 | IDR Issued | 27 | PPC Forms 5471 — PBI and PHL | IRS
2023-01-20 | IDR Response | 22 | Response to IDR 22 — 24 documents produced | C&H
2023-01-26 | IDR Issued | 28 | PBI employee compensation data | IRS
2023-01-27 | IDR Response | 23 | Response to IDR 23 — 6 documents produced | C&H
2023-02-06 | IDR Response | 24 | Response to IDR 24 — 10 documents produced | C&H
2023-02-09 | IDR Issued | 29 | PBI supply chain management documentation | IRS
2023-02-15 | Objection | 26 | Scope objection filed — IDR 26 overly broad (Cross to Dunleavy) | C&H
2023-02-15 | IDR Response | 25 | Response to IDR 25 — 14 documents produced | C&H
2023-02-19 | IDR Response | 27 | Response to IDR 27 — 8 documents produced | C&H
2023-02-23 | IDR Issued | 30 | Knowledge Development box claims — PBI Irish Revenue filings | IRS
2023-02-24 | IDR Response | 28 | Response to IDR 28 — 12 documents produced | C&H
2023-03-02 | IDR Issued | 31 | Revenue projections — reasonably anticipated benefits under CSA | IRS
2023-03-08 | IDR Response | 29 | Response to IDR 29 — 20 documents produced | C&H
2023-03-16 | IDR Issued | 32 | Discount rate / WACC analysis used in PCT valuation | IRS
2023-03-17 | IDR Response | 26A | Response to IDR 26A (narrowed scope) — 18 documents produced | C&H
2023-03-30 | IDR Issued | 33 | PPC IP portfolio inventory — patents, trademarks, know-how | IRS
2023-04-10 | IDR Response | 30 | Response to IDR 30 — 16 documents produced | C&H
2023-04-13 | IDR Issued | 34 | PBI medical affairs activities | IRS
2023-04-14 | IDR Response | 31 | Response to IDR 31 — 22 documents produced | C&H
2023-04-27 | IDR Issued | 35 | Intercompany pricing decisions and market strategy documents | IRS
2023-04-28 | IDR Response | 32 | Response to IDR 32 — 8 documents produced | C&H
2023-04-28 | IDR Response | 33 | Response to IDR 33 — 14 documents produced | C&H
2023-05-11 | IDR Issued | 36 | Comparable company financial data — CPM/TNMM analysis | IRS
2023-05-12 | IDR Response | 34 | Response to IDR 34 — 10 documents produced | C&H
2023-05-25 | IDR Issued | 37 | PPC travel records — U.S.-to-Ireland and Ireland-to-U.S. | IRS
2023-05-25 | Milestone | Mid-examination conference — IRS preliminary positions discussed | IRS / C&H / PPC
2023-06-02 | IDR Response | 35 | Response to IDR 35 — 32 documents produced | C&H
2023-06-08 | IDR Issued | 38 | PPC executive committee and management committee minutes | IRS
2023-06-09 | IDR Response | 36 | Response to IDR 36 — 22 documents produced | C&H
2023-06-22 | IDR Issued | 39 | Sensitivity analyses — Discount rates and revenue projections | IRS
2023-06-23 | IDR Response | 37 | Response to IDR 37 — 8 documents produced | C&H
2023-07-06 | IDR Issued | 40 | Forms 5471 supplemental — PBI and PHL | IRS
2023-07-07 | IDR Response | 38 | Response to IDR 38 — 18 documents produced | C&H
2023-07-13 | IDR Issued | 41 | PBI insurance policies — D&O, professional liability, property | IRS
2023-07-18 | IDR Response | 40 | Response to IDR 40 — 12 documents produced | C&H
2023-07-20 | IDR Issued | 42 | Product lifecycle and pipeline analyses | IRS
2023-07-21 | IDR Response | 39 | Response to IDR 39 — 6 documents produced | C&H
2023-07-27 | IDR Issued | 43 | PBI IT infrastructure and systems | IRS
2023-08-03 | IDR Issued | 44 | PBI capital expenditure and investment records | IRS
2023-08-11 | IDR Response | 41 | Response to IDR 41 — 6 documents produced | C&H
2023-08-15 | Milestone | Meeting with IRS Economist Dr. Alan Washburne | IRS / C&H
2023-08-17 | IDR Issued | 45 | Legacy compound net sales data (non-Americas) | IRS
2023-08-18 | IDR Response | 42 | Response to IDR 42 — 10 documents produced | C&H
2023-08-22 | IDR Response | 44 | Response to IDR 44 — 14 documents produced | C&H
2023-08-25 | IDR Response | 43 | Response to IDR 43 — 8 documents produced | C&H
2023-08-31 | IDR Issued | 46 | PBI profit split data and segmented P&L by product line | IRS
2023-09-08 | IDR Response | 45 | Response to IDR 45 — 8 documents produced | C&H
2023-09-14 | IDR Issued | 47 | Supplemental documentation — compensation, travel, board attendance (final IDR) | IRS
2023-09-20 | Milestone | Call with IRS Chief Counsel Attorney-Advisor Franklin Rosario | IRS / C&H
2023-09-20 | IDR Response | 46 | Response to IDR 46 — 12 documents produced | C&H
2023-09-29 | IDR Response | 47 | Response to IDR 47 (final IDR) — 16 documents produced | C&H
2023-10-12 | Milestone | NOPA issued — $380.4M proposed adjustments (CSA: $235.01M, Royalty: $188.04M, Offset: -$42.65M) | IRS
2023-11-08 | Milestone | 30-Day Letter issued | IRS
2023-12-22 | Milestone | Formal Protest filed | C&H / PPC
2024-01-15 | Milestone | Case assigned to Appeals Officer Noreen Castañeda | IRS Appeals
2024-02-28 | Milestone | Appeals conference — IRS Appeals Office, Manhattan | IRS Appeals / C&H / PPC
2024-03-15 | Milestone | Settlement offer from Appeals — $47.6M (12.51% of proposed) | IRS Appeals
2024-03-22 | Milestone | PPC acceptance of settlement | PPC / C&H
2024-03-29 | Milestone | Form 906 Closing Agreement executed — examination closed | IRS / PPC