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.
WASHINGTON (Reuters) – U.S. retailer Walgreen Co (WAG.N: Quote, Profile, Research, Stock Buzz) on Tuesday appeared to back away from a plan to reincorporate abroad to reduce its U.S. taxes, while politicians again urged the White House to curb deals that shift tax domiciles.
Walgreen, which operates the largest U.S. chain of pharmacies, will buy the 55 percent it does not already own of European drugstore chain Alliance Boots ABN.UL, but it will not move its tax domicile overseas, Sky News reported.
WASHINGTON, July 29 (Reuters) – Corporations that move their
tax domiciles abroad would be denied federal contracts under
legislation offered on Tuesday by Democrats in the U.S.
Congress, targeting tax-driven deals known as inversions.
With November’s congressional elections approaching,
Democrats are blasting away at inversions. Few U.S. companies
have done such deals, but as they become more common, they are
attracting more negative publicity.
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.