Warren Buffett, known for advocating higher taxes on wealthy people like himself, will save Berkshire Hathaway taxes on the purchase of Duracell. Credit Bill Pugliano/Getty Images
The maneuver announced on Thursday — known as a “cash-rich split-off” — falls within guidelines set by the Internal Revenue Service that allow for corporate businesses to be sold using stock without taking a big tax hit. P.& G. has been especially eager to find a way to part with the division in a low-tax manner, since it took on Duracell as part of its $57 billion takeover of Gillette nine years ago.
According to Robert Willens, an independent corporate tax adviser, an I.R.S. ruling that the transaction was tax-free should be “eminently achievable.”
Still, the move highlights the contrast between Mr. Buffett’s repeated calls for higher personal taxes on wealthy individuals like himself and his efforts to minimize the tax bill for Berkshire. So strong was his advocacy on the personal income tax front that the White House named a proposed rate increase the Buffett Rule.