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
The Qualities That Define A Successful Entrepreneur
Entrepreneur definition: Being a successful entrepreneur means more than starting new ventures every other day. It means the right attitude towards a business and the determination and grit to achieve success. A successful entrepreneur has a strong inner drive that helps him or her to succeed. Let us take a look at the qualities that…
4 Ways to Lead During Turbulent Times
4 Ways to Lead During Turbulent Times By Tim Irwin A couple of years out of college, my future wife, Anne, moved to Washington State from Wisconsin where she’d been living. She and her roommate pulled a large U-Haul trailer with all their worldly possessions on the long trip. They reached the Continental Divide, and…
Leadership Skills: How to Be a Successful Communicator
Leadership Skills: How to Be a Successful Communicator Author: Jacqueline Moore As a business leader, one of the most important leadership skills you’ll ever demonstrate is knowing how to communicate. When you think about it, most business leadership consists of communication of one sort or another. You hold meetings with staff or board members or…
Six Important Managerial Skills For Successful Leadership
Six Important Managerial Skills For Successful Leadership A mark of a good leader is to be able to provide consistent motivation to his team encouraging them to attain excellence and quality in their performance. A good leader is always looking for ways to improve production and standards. Here are six management skills to be an…