WASHINGTON, July 28 (Reuters) – President Barack Obama could
act without congressional approval to limit a key incentive for
U.S. corporations to move their tax domiciles abroad in
so-called “inversion” deals, a former senior U.S. Treasury
Department official said on Monday.
By invoking a 1969 tax law, Obama could bypass congressional
gridlock and restrict foreign tax-domiciled U.S companies from
using inter-company loans and interest deductions to cut their
U.S. tax bills, said Stephen Shay, former deputy assistant
Treasury secretary for international tax affairs in the Obama
administration. He also served as international tax counsel at
Treasury from 1982 to 1987 in the Reagan administration.
WASHINGTON, July 25 (Reuters) – President Barack Obama
called on Thursday for limits on corporate deals known as
inversions in which U.S. companies shift domicile to foreign
countries to avoid U.S. taxes.
Washington has grappled for 30 years with inversions.
Fifty-two such deals have occurred in the past 31 years, half
since the 2008-2009 credit crisis, a Reuters review showed.
WASHINGTON (Reuters) – Immediate government action is needed to plug a loophole that allows U.S. corporations to avoid federal taxes by shifting their tax domiciles overseas through deals known as inversions, the head of the U.S. Senate Finance Committee said on Tuesday.
Nine inversion deals have been agreed to this year by companies ranging from banana distributor Chiquita Brands International Inc to drugmaker AbbVie Inc and more are being considered. The transactions are setting a record pace since the first inversion was done 32 years ago.
WASHINGTON, July 21 (Reuters) – As more U.S. corporations do
deals to cut taxes by shifting their tax domiciles overseas, the
Senate Finance Committee will hold a hearing on Tuesday focused
on these transactions known as inversions.
Nine such deals have been agreed to this year by companies
ranging from banana distributor Chiquita Brands International,
Inc to drugmaker AbbVie Inc and more are being
considered. The transactions are setting a record pace since the
first inversion was done 32 years ago.
July 16 (Reuters) – Calling for a new sense of “economic
patriotism,” U.S. Treasury Secretary Jacob Lew urged Congress on
Wednesday to take steps quickly to discourage U.S. companies
from moving their tax domiciles abroad to avoid federal taxes.
“Congress should enact legislation immediately,” Lew told a
business conference in New York hosted by cable television
channel CNBC. “We should have some economic patriotism here.”
WASHINGTON, July 15 (Reuters) – A U.S. group that represents
accountants said on Tuesday it has sued the Internal Revenue
Service, challenging its new voluntary program for educating and
testing tax return preparers.
“The IRS’s new rule regulating tax return preparers is an
unlawful exercise of government power,” Barry Melancon,
president of the American Institute of Certified Public
Accountants (AICPA), said in a statement.
WASHINGTON, July 15 (Reuters) – The U.S. House of
Representatives voted on Tuesday to ban permanently any taxation
of Internet access, a prohibition that is temporary and
currently set to expire in 16 weeks.
In a move opposed by some Democrats and state and local
governments, the House approved a bill that would bar state and
local governments from enacting Internet connection taxes.
WASHINGTON (Reuters) – Seventy-six U.S. corporations have shifted their tax domiciles out of the United States to other countries since 1983 to avoid U.S. taxes, with a sharp increase recently in such deals, a policy research arm of Congress said on Monday.
Known as inversions, these transactions are still rare but are becoming more common and causing concern in Washington. Responding to a request from lawmakers for background, the Congressional Research Service said it had found 47 such deals had been done in the past decade and more are in the works.
WASHINGTON (Reuters) – The U.S. Internal Revenue Service said on Thursday it will launch a voluntary education program for tax return preparers, a step back from an earlier mandatory program of testing and regulation that was halted by the courts.
The U.S. Court of Appeals for the District of Columbia ruled in February that the IRS did not have the authority on its own to impose rules on up to 700,000 preparers who are not already licensed as attorneys, accountants or “enrolled agents.”
WASHINGTON (Reuters) – As Walgreen Co, the largest U.S. drugstore chain, edged closer to potentially moving its tax home base abroad, the senior U.S. senator from its home state said on Wednesday that he hoped the company would not take such a step.
Illinois Democrat Richard Durbin told Reuters in an interview that he spoke with a Walgreen lobbyist on Tuesday. “I told him I hope that the rumor’s not true,” Durbin said.