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
How Can Trump Make the Country Great Again for Business?
President Trump has made, and continues to make a lot of promises to all Americans about taxes and the economy. Throughout his campaign the president continued to push his “Make America Great Again” slogan to the delight of all those who helped him get elected. Obviously, his message resonated with enough people in the right…
True Leadership Really Depends On Just One Quality
True Leadership Really Depends On Just One Quality If you could choose only one quality for a good leader to have what would be? Or, if you had to describe a good leader in only one word, what word would you choose? Would it be compassionate, trustworthy, humble, integrity, or perhaps something else? All of…
How Top Performers Stay Out of Their Own Way
How Top Performers Stay Out of Their Own Way What is a high performer? Does it mean you’ve been promoted to an upper-level position in a company? Does it mean you set and achieve goals at a high level? Does it mean you always come out on top in your professional life? Those all fit…
The Tax Cuts and Jobs Act and the Economy
The Tax Cuts and Jobs Act and the Economy The largest tax reform in recent history is now upon us and since it has already gone into effect, many people are wondering what comes next. While it won’t affect your tax bill this 2017 filling season you should expect to see some changes over the…