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
Are Casualty and Theft Losses Tax Deductible?
Are Casualty and Theft Losses Tax Deductible? If your property is destroyed, damaged, or stolen due to casualty or theft, you may be entitled to a tax deduction. A casualty is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, and unusual. A sudden event is one that…
How to Defend Yourself When Your QuickBooks Files Are Part of an Audit
How to Defend Yourself When Your QuickBooks Files Are Part of an Audit The world of technology has changed just about every aspect of our lives. The tax and accounting world is no different. Thanks to online tax programs and software packages designed for accounting purposes, keeping a solid record of your important financial information…
Develop a Sound Investment Plan
Develop a Sound Investment Plan When the stock market heads south, is your first instinct to sell stocks and get into something safer? With a well-planned portfolio, that’s probably the last thing that you should be doing. After all, a plan tailors a mix of stocks, bonds and cash equivalents to your particular financial goals,…
Bad Attitudes in the Workplace
Bad Attitudes in the Workplace Studies show that employee morale has taken a hit lately. Worker morale slumped last year, according to the results of a new survey from Randstad, one of the world’s largest professional employment services providers. The review was compiled from 3,233 online interviews, conducted this spring for Randstad by Harris Interactive.…