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jpak

(41,758 posts) Tue Apr 5, 2016, 10:38 AM Apr 2016

U.S. Moves to Thwart Use of Foreign Inversions as Tax Dodge

Source: New York Times

The Treasury Department took new steps on Monday to further curtail a popular type of merger in which an American company buys a foreign counterpart, then moves abroad to lower its tax bill.

The new rules, announced in conjunction with the Internal Revenue Service, take particular aim at foreign companies that have completed multiple deals with American companies in a short period, what the regulator calls “serial inverters.”

In pushing the new rules, its third effort in recent years, the Obama administration appears to have raised concern about the fate of the biggest inversion, Pfizer’s $150 billion takeover of Allergan, a Dublin-based drug maker.

The rules would apply to that inversion and any transactions that close after Monday.

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Read more: http://www.nytimes.com/2016/04/05/business/dealbook/us-acts-to-end-use-of-foreign-acquisitions-to-dodge-taxes.html?_r=0

4 replies

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U.S. Moves to Thwart Use of Foreign Inversions as Tax Dodge (Original Post) jpak Apr 2016 OP

A good first step, but a lot more is needed. lark Apr 2016 #1

As all us little people file, and pay, our taxes...MAKE THE NEW RULES RETROACTIVE for the FailureToCommunicate Apr 2016 #2

How much has Trump hidden offshore? Bernardo de La Paz Apr 2016 #3

Obama Addresses Corporate Inversions, Calls Tax Loophole ‘Insidious’ Eugene Apr 2016 #4

lark

(23,147 posts)

1. A good first step, but a lot more is needed.

Reply to jpak (Original post)

Tue Apr 5, 2016, 10:49 AM

Apr 2016

Any company that moves jobs abroad or 'relocates" overseas needs to pay a hefty fine for every single job moved or eliminated in America and taxes on all foreign income.

FailureToCommunicate

(14,020 posts)

2. As all us little people file, and pay, our taxes...MAKE THE NEW RULES RETROACTIVE for the

Reply to jpak (Original post)

Tue Apr 5, 2016, 10:51 AM

Apr 2016

"serial inverters" like Pfizer, et al !!!!!

Bernardo de La Paz

(49,033 posts)

3. How much has Trump hidden offshore?

Reply to jpak (Original post)

Tue Apr 5, 2016, 11:06 AM

Apr 2016

Eugene

(61,939 posts)

4. Obama Addresses Corporate Inversions, Calls Tax Loophole ‘Insidious’

Reply to jpak (Original post)

Tue Apr 5, 2016, 04:14 PM

Apr 2016

Source: ABC News

Obama Addresses Corporate Inversions, Calls Tax Loophole ‘Insidious’

By JOHN PARKINSON MARGARET CHADBOURN
Apr 5, 2016, 12:25 PM ET

President Obama slammed corporate inversions today as "insidious" and argued that Americans end up paying "the tab" when U.S. companies exploit tax loopholes.

The Treasury Department announced on Monday that it was taking additional steps to discourage companies from using a tax loophole known as corporate inversion – that is when a U.S. company buys a foreign competitor and then moves overseas to reduce its tax bill.

Obama said he hopes the Treasury's steps will end the practice, and also called on lawmakers to help eliminate loopholes that he said benefit the wealthy and corporations.

"It sticks the rest of us with the tab and it makes hard-working Americans feel like the deck is stacked against them," Obama said.

In 2009, when the U.S. economy was crumbling, Obama first offered a plan to crack down on corporate tax loopholes. Business groups rallied against his proposal, arguing it would hurt the weak economy. Democrats in Congress also turned against Obama, and the loophole survived.

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