WASHINGTON (Reuters) – More large U.S. businesses are organizing as partnerships, rather than corporations, and the tax-collecting U.S. Internal Revenue Service is not doing enough to keep an eye on them, a government watchdog said on Thursday.
Echoing concerns raised by other Washington officials about the surge, the Government Accountability Office (GAO) said more than 10,000 large businesses were set up as partnerships in 2011, three time as many as in 2002.
WASHINGTON, Sept 8 (Reuters) – Treasury Secretary Jack Lew
called on Monday for prompt action to stem the surge of U.S.
businesses reincorporating abroad in “inversion” deals to avoid
corporate U.S. income taxes, but offered no new ideas.
While proposals stacked up in Congress, Lew said the
Treasury Department was evaluating “what we can do to make these
deals less economically appealing, and we plan to make a
decision in the very near future.”
WASHINGTON (Reuters) – U.S. Treasury Secretary Jack Lew on Monday called for swift action to close a federal tax code “loophole” that allows businesses to reincorporate abroad to avoid U.S. corporate taxes, but offered no new ideas for how to do that.
Amid growing concern among Washington policy-makers about these transactions known as inversions, Lew said the Treasury Department “is completing an evaluation of what we can do to make these deals less economically appealing, and we plan to make a decision in the very near future.”
WASHINGTON (Reuters) – Democratic Senate investigators criticized a watchdog for the U.S. Internal Revenue Service on Friday for “inaccurately and unfairly” damaging public confidence in the tax agency’s political impartiality.
Republican investigators disagreed, defending the job done by the Treasury Inspector General for Tax Administration (TIGTA) last year in reviewing the IRS’ handling of tax-exemption applications received from political groups.
WASHINGTON August 18 (Reuters) – Establishing a tax domicile abroad to avoid U.S. taxes is a hot strategy in corporate America, but many companies that have done such “inversion” deals have failed to produce above-average returns for investors, a Reuters analysis has found.
Looking back three decades at 52 completed transactions, the review showed 19 of the companies have subsequently outperformed the Standard & Poor’s 500 index, while 19 have underperformed. Another 10 have been bought by rivals, three have gone out of business and one has reincorporated back in the United States.
WASHINGTON (Reuters) – The U.S. government has grappled for more than 30 years with corporate deals known as inversions in which U.S. companies shift their tax domiciles abroad to avoid U.S. taxes.
Fifty-two substantial deals like this have occurred since 1983, about half of them since the 2008-2009 credit crisis, according to a Reuters analysis.
WASHINGTON, Aug 14 (Reuters) – A senior U.S. senator said on
Thursday he has written to Hospira Inc and urged the
drug and medical device maker not to move its tax domicile
abroad to save on U.S. taxes.
Citing recent reports that Hospira plans to buy the medical
nutrition unit of France’s Danone SA, Dick Durbin said
in a statement he told Chief Executive Officer Michael Ball that
Hospira should not “turn its back on American taxpayers and
consumers by taking advantage of a tax loophole called
WASHINGTON (Reuters) – The U.S. Treasury Department is looking into increased use by companies of the master limited partnership (MLP) as a business structure, a department spokesperson said on Monday, hours after a pioneering user turned its back on the MLP.
Houston-based Kinder Morgan Inc (KMI.N: Quote, Profile, Research, Stock Buzz), the biggest U.S. pipeline company, said it will consolidate into a single corporation, folding together its existing organization of several master limited partnerships (MLPs).
WASHINGTON (Reuters) – An influential U.S. senator is encouraging the Internal Revenue Service to stamp out deals that allow companies to relocate their headquarters overseas in search of lower tax rates.
Senator Carl Levin, who has railed for years against tax policies he has labeled costly loopholes, said the Obama administration should not wait for Congress to curtail a growing trend of transactions known as “inversions.”
WASHINGTON/NEW YORK, Aug 5 (Reuters) – U.S. retailer
Walgreen Co on Tuesday backed away from a plan to
reincorporate abroad to cut its U.S. tax bill, while the Obama
administration said it was considering steps to curb such
corporate tax domicile-shifting deals.
Walgreen, the operator of the largest U.S. pharmacy chain,
will buy the 55 percent it does not already own of European
rival Alliance Boots, but the U.S. company will not use
the deal to move its tax domicile overseas, said a person
familiar with the matter.