Compliance » Rising Political Pressure Against Inversions

Rising Political Pressure Against Inversions

September 15, 2014

iStock_money america

The tax strategy known as inversion, whereby a U.S. company acquires or merges with a company in a more tax-friendly overseas jurisdiction and moves its headquarters there, has proceeded in relative obscurity for years. But lately it’s become both a media and political issue, with critics maintaining that it’s unfair when companies that continue to benefit from U.S. infrastructure and institutions are able to slip out from under U.S. tax obligations. Last week’s developments included some rumbling from the White House and an announcement by two influential Congressman about proposed legislation. From the White House, it was a speech by Treasury Secretary Jacob J. Lew, in which he said the administration would propose regulations that would make inversions less attractive. Two days later, Democratic Senators Charles E. Schumer (New York) and Richard Durbin (Illinois) proposed legislation that, while not interfering with inversion itself, would alter some other tax rules that make it profitable.

Read full article at:

Daily Updates

Sign up for our free daily newsletter for the latest news and business legal developments.

Scroll to Top