Crackdown Targets Inversions Designed to Limit U.S. Taxes
Source: Bloomberg
The U.S. Treasury Department announced steps that will make it harder for U.S. companies to move their addresses outside the country to reduce their taxes, clamping down on the practice known as inversions.
The rules, which apply to deals that close today or after, include a prohibition on hopscotch loans that let companies access foreign cash without paying U.S. taxes and impose new curbs on actions that companies can take to make an inversion transaction qualify for favorable tax treatment.
Even without more authority from Congress or aggressive steps that former government officials had advocated, the new rules are expected to give companies and their advisers pause and require recalculation of some pending deals. President Barack Obama and Treasury Secretary Jacob J. Lew have urged Congress to pass a bill that would curtail inversions.
Weve recently seen a few large corporations announce plans to exploit this loophole, undercutting businesses that act responsibly and leaving the middle class to pay the bill, Obama said in a statement today. Im glad that Secretary Lew is exploring additional actions to help reverse this trend.
Read more: http://www.bloomberg.com/news/2014-09-22/treasury-unveils-anti-inversion-rules-against-tax-deals.html
safeinOhio
(32,532 posts)" Treasury risks exceeding its authority and may face a legal challenge from companies with pending inversions"
Once again the SC may knock this down on the grounds of religious freedom.. They worship money.
cstanleytech
(26,082 posts)if the companies both large and small paid their employees better but the fact is alot of them dont pay them well and in fact are screwing them over big time like Walmart, McDonalds, Bi-Lo and even the local IGAs by cutting the numbers of full timers if not outright firing alot of their full timers to replace them with lower paying part timers like Bi-Lo recently did here in my area.
tclambert
(11,080 posts)Who gives a damn where they pretend their world headquarters is located? If they take American money, they need to pay.
BlancheSplanchnik
(20,219 posts)May it go into effect with a quickness.