U.S. Treasury Making Push to Keep More Corporate Taxes Home
For any company considering a tax inversion, the latest news form the U.S. Treasury will likely make it reconsider. Tax inversions, which are used by American companies to reduce their tax bill, occur when a company acquires or opens a subsidiary in a foreign country in order to change its tax address and save millions. Many companies have employed this tactic in recent months, which has caused the government to increase its efforts to stop them.
According to the Treasury Department, the new regulations are aimed at fixing the country’s broken tax system. Specifically, the new regulations from the IRS and the Treasury will seek to put an end to the “earnings stripping” process. This occurs when a company pays deductible interest to an affiliate or parent company in another country, which has lower taxes.
While many corporations have expressed displeasure with the government’s efforts the current White House administration, along with the IRS and the Treasury, has pushed forward to make these changes, especially to target earnings stripping. The department did announce that it would offer a “broad exemption” for short-term loans and cash pools. It also said the effective date won’t be until January 1, 2018, so companies will have more time to prepare and comply with the changing regulations.
You also might like How Much are U.S. Companies Paying in Corporate Tax?
http://www.cnbc.com/2016/10/13/treasury-takes-its-latest-step-to-keep-corporate-taxes-in-the-us.html
Learning to Lead by Example
Learning to Lead by Example Each morning, the mirror reminds us of at least one person whose motives should meet all of our expectations. There is no limit to what an army of these individuals can accomplish. As you live your life if a way in which you are daily striving to reach your full…
America Taking Money From Its New Citizens?
America Taking Money From Its New Citizens? According to various government reports, there are literally trillions of dollars being hidden in offshore accounts by Americans who don’t want to pay their fair share of taxes. Of course, everyone should have to pay his or her fair share to Uncle Sam, but no one should be…
Where Can You Find the World’s Best Tax Havens?
Where Can You Find the World’s Best Tax Havens? What’s your next vacation location: the Caribbean Tahiti, Bermuda, Belize, the Virgin Islands, or perhaps the Cayman Islands? These are all great choices and many of the world’s wealthiest individuals not only get to travel to these exotic locations on a regular basis, but many of…
Enjoy Them While They Last: End of Bush Tax Cuts Could Throw U.S. into Deeper Recession
Enjoy Them While They Last: End of Bush Tax Cuts Could Throw U.S. into Deeper Recession A few Senate Democrats recently made noise over ending the Bush Tax Cuts in January 2011 given the country’s economic prospects. Although many people have predicted that the end of the Bush Tax Cuts is a foregone conclusion, a…