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Democrat targets corporate tax-avoidance deals in U.S. Congress
Source: Reuters
Business News | Mon Nov 9, 2015 6:12pm EST
Democrat targets corporate tax-avoidance deals in U.S. Congress
WASHINGTON | BY SUSAN CORNWELL
Tax-driven "inversion" deals that let companies flee the U.S. tax system by relocating abroad, if only on paper, would be curbed under legislation introduced in Congress, as Pfizer Inc (PFE.N) pursues such a deal with rival Allergan Plc (AGN.N).
Wisconsin Democratic Representative Mark Pocan's bills likely have little chance of advancing in the Republican-run Congress. But they represent renewed concern about the transactions. A wave of them peaked in September 2014 when a Treasury Department crackdown slowed, but did not halt them.
The possible Pfizer-Allergan deal helps to "highlight what can go on," Pocan, a small business owner, said in an interview on Monday.
If Congress is going to pursue tax reform, closing such loopholes should be part of the conversation, he said.
In an inversion, a U.S. company typically buys a foreign company and then relocates to its home country in an effort to cut the combined company's overall taxes. Relocations of this sort usually only involve paperwork, leaving core operations such as executive management and research in the United States.
[font size=1]-snip-[/font]
Democrat targets corporate tax-avoidance deals in U.S. Congress
WASHINGTON | BY SUSAN CORNWELL
Tax-driven "inversion" deals that let companies flee the U.S. tax system by relocating abroad, if only on paper, would be curbed under legislation introduced in Congress, as Pfizer Inc (PFE.N) pursues such a deal with rival Allergan Plc (AGN.N).
Wisconsin Democratic Representative Mark Pocan's bills likely have little chance of advancing in the Republican-run Congress. But they represent renewed concern about the transactions. A wave of them peaked in September 2014 when a Treasury Department crackdown slowed, but did not halt them.
The possible Pfizer-Allergan deal helps to "highlight what can go on," Pocan, a small business owner, said in an interview on Monday.
If Congress is going to pursue tax reform, closing such loopholes should be part of the conversation, he said.
In an inversion, a U.S. company typically buys a foreign company and then relocates to its home country in an effort to cut the combined company's overall taxes. Relocations of this sort usually only involve paperwork, leaving core operations such as executive management and research in the United States.
[font size=1]-snip-[/font]
Read more: http://www.reuters.com/article/2015/11/09/us-usa-taxavoidance-lawmaking-idUSKCN0SY2N820151109
