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
Igniting the Genius Withing – Prasad Kaipa, CEO Coach and Advisor
About Prasad Kaipa Prasad has been an advisor and coach focusing on innovation and leadership since 1990 for about 120 C-level executives in Global Fortune 500 companies. Prasad’s unique competence is in helping his clients find their next significant step and take it. He found that unless he helps clients to examine their signature…
Silicon Valley Executive Network | Brian Reynard
About Brian Reynard Brian Reynard is the CEO and Founder of the Silicon Valley Executive Network (SVEN). He is a silicon valley cxo program native and attended Santa Clara University where he received his Undergraduate and Graduate degrees. In 2007 be founded the Silicon Valley Executive Network, an organization focused on bringing together CXO/VP Tech…
Star Valley Wyoming Trout Ranch | Scott Carlisle
About Scott Carlisle In his early years Scott Carlisle visited a small fishery to see where the fish on his father’s ranch was coming from. He fell in love with the place and tried to find employment there. After being denied work there he went home and told his wife that one day he…
Joke Videos
Joke Videos Insanity So, you’re saying it’s ok. Insanity, is a side-effect of tax law. Accounting Classes I tried taking a course on ethics for my CPE credits, but everything contridicted what I learned in my accounting classes. Feelings So, you’re saying that I should own my feelings… but my accountant said that it would…