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May 20, 2014

Overseas corporate tax dodge targeted by U.S. Democrats

WASHINGTON, May 20 (Reuters) – Taking aim against corporate
tax avoidance, Democrats in the U.S. Congress called on Tuesday
for curbs on U.S. multinationals that shift tax domiciles abroad
in deals known as “inversions.”

While still rare, these deals are becoming more common, with
two recently attempted transactions by Pfizer Inc and
Omnicom Group Inc drawing attention to the strategy.

May 20, 2014

Corporate foreign tax dodge has bedeviled U.S. for decades

May 20 (Reuters) – Congressional Democrats on Tuesday
proposed another clampdown on a corporate tax-dodging strategy
known as “inversion” that the U.S. government has grappled with
for 30 years.

Inversions involve a U.S. multinational shifting its tax
domicile to a foreign country with a corporate income tax rate
lower than the U.S. rate.

May 20, 2014

Democrats urge curbs on foreign corporate tax dodge

WASHINGTON (Reuters) – Taking aim against corporate tax avoidance, 14 Senate Democrats called on Tuesday for curbs on U.S. multinationals that shift their tax domiciles abroad in deals known as “inversions.”

While still rare, the deals are becoming more common, with two recently attempted transactions by Pfizer Inc and Omnicom Group Inc drawing attention to the strategy.

May 19, 2014

U.S. Democrats to target companies moving overseas to dodge taxes

WASHINGTON (Reuters) – Corporate tax-dodging deals known as inversions, in which a U.S. multinational shifts its tax domicile to a lower-tax country, would be restricted under legislation to be proposed in both houses of Congress by Democrats on Tuesday.

Representative Sander Levin and Senator Carl Levin, brothers from Michigan, will both propose bills, aides said.

Apr 28, 2014

Pfizer move to join tax-driven deal-making raises red flags in U.S

By Kevin Drawbaugh

(Reuters) – A wave of tax-driven overseas deal-making by U.S. companies gained momentum with drugmaker Pfizer Inc’s (PFE.N: Quote, Profile, Research, Stock Buzz) announcement on Monday that it had made takeover bids for UK rival AstraZeneca Plc (AZN.L: Quote, Profile, Research, Stock Buzz), fueling political concerns about tax “reflagging” strategies.

Pfizer said it wants to buy AstraZeneca and merge the two companies into a UK holding company with a UK tax domicile, while maintaining its operational headquarters in New York. It would likely be the largest deal ever done that included such a so-called tax “inversion.”

Apr 8, 2014

Untaxed U.S. corporate profits held overseas top $2.1 trln -study

WASHINGTON, April 8 (Reuters) – Foreign profits held
overseas by U.S. corporations to avoid taxes at home nearly
doubled from 2008 to 2013 to top $2.1 trillion, said a private
research firm’s report, prompting a call for reform by the
Senate’s top tax law writer.

“The new numbers … certainly highlight what is one of the
key challenges for tax reform. I do think there need to be some
reforms in this area,” Senate Finance Committee Chairman Ron
Wyden told reporters on Tuesday on Capitol Hill.

Apr 1, 2014

U.S. Congress renews annual temporary tax laws fight

April 1 (Reuters) – The annual battle in the U.S. Congress
over renewing scores of temporary tax breaks, including the
corporate research tax credit and individual deductions for
teachers’ supplies and college tuition costs, got under way on
Tuesday.

In the Senate, the new chairman of the tax-writing Finance
Committee unveiled legislation that would modestly trim the list
of about 55 laws known as the “tax extenders” because they
expire every year or two and need to be regularly extended.

Apr 1, 2014

Congress begins battle over temporary U.S. tax measures

By Kevin Drawbaugh

(Reuters) – An annual fight in the U.S. Congress over renewing scores of temporary tax breaks – including the corporate research tax credit and individual deductions for teachers’ supplies and college tuition costs – got under way on Tuesday.

In the Senate, the new chairman of the tax-writing Finance Committee unveiled legislation that would modestly trim the list of about 55 laws known as the “tax extenders” because they expire every year or two and need to be regularly extended.

Mar 31, 2014

Group chides GE after study of U.S. corporate tax break lobbying

WASHINGTON (Reuters) – General Electric Co has lobbied more aggressively than any other corporation to preserve a tax loophole that lets multinationals shelter offshore financial profits from U.S. taxes, an activist group said on Monday.

As Congress considers the annual renewal of scores of tax breaks, Americans for Tax Fairness released a study focused on the “active financing exception (AFE),” enacted in 1997, which U.S. companies use to avoid taxes on offshore financial income.

Mar 26, 2014

Bitcoins are property, not currency, IRS says regarding taxes

WASHINGTON (Reuters) – Wading into a murky tax question for the digital age, the U.S. Internal Revenue Service said on Tuesday that bitcoins and other virtual currencies are to be treated, for tax purposes, as property and not as currency.

“General tax principles that apply to property transactions apply to transactions using virtual currency,” the IRS said in a statement, meaning that bitcoins would be taxed as ordinary income or as assets subject to capital gains taxes, depending on the circumstance.