Published in Last Word
In response to concerns about U.S. firms relocating overseas in order to reduce their U.S. tax bill, the Treasury Department has made regulatory changes that would make these “corporate inversions” less attractive. Click here to read the Treasury fact sheet.
Three of the provisions are designed to stop inverted companies from using techniques—sometimes known as "hopscotching"—to get access to their offshore cash without paying U.S. tax on it. Only companies that invert on or after September 22 would be affected by these measures. Other provisions make it more difficult for U.S. firms to evade current ownership standards in inverting, and to spin off subsidiaries overseas.
Congressional leaders generally responded to the Treasury rules by reaffirming the need for tax reform. ACEC continues to support comprehensive tax reform that treats all business structures equally, and that provides sustainable infrastructure financing.
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