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
Do All of Trump’s Strategists Favor Tax Cuts for the Wealthy?
Do All of Trump’s Strategists Favor Tax Cuts for the Wealthy? There’s no secret that Republican lawmakers want to lower tax rates for the wealthy. However, there are new reports that someone very close to President Trump is looking at raising the tax rate for the nation’s highest earners. It might come as a surprise,…
Would Corporate Tax Cut Benefits Ever Reach the Middle Class?
Would Corporate Tax Cut Benefits Ever Reach the Middle Class? By now you’ve likely heard that President Trump wants to cut the nation’s corporate tax rate from its current 35 percent to 15 percent. Congress is on board with cutting the rate, but the agreement on this plan stops there. Not only has Congress proposed…
Top CEOs Looking for Tax Reform in a Hurry
Top CEOs Looking for Tax Reform in a Hurry We are almost five months into this new presidency and the nation is still waiting for tax reform. However, it appears that many people, including congressional lawmakers, are more worried about issues other than the country’s tax code. There are some, though, that want change, and…
The Principles Behind Trump’s Big Tax Reform Plan
The Principles Behind Trump’s Big Tax Reform Plan After months of promises and speculation, not to mention a never-ending supply of political rhetoric, the new presidential administration finally released its plan for tax reform, titled “2017 Tax Reform for Economic Growth and American Jobs.” So how big is it? If you believe the National Economic…