Legislative update - Renewed focus on corporate inversions 

July 16:  Recent news reports and statements from Congress and the administration have focused on corporate inversions—i.e., U.S. companies that, through corporate mergers and acquisition, reorganize and reincorporate overseas to reduce their U.S. tax burden.

Senate Finance Chairman Ron Wyden (D-OR) today released a brief statement in which he advocated that the corporate inversion “loophole must be plugged” and, as the speed of inversions increases, he stated there will be “bipartisan urgency” to address this issue and that he is “talking with . . . colleagues and exploring options for addressing this in the near and long term.”


The chairman’s statement comes after news that Treasury Secretary Jack Lew sent a letter [PDF 534 KB] to the leaders of the tax writing committees, announcing the administration’s support for immediate measures to address corporate inversions and not to wait for tax reform.

What does this mean?

The issue of corporate inversions has been considered by congressional members and administrative officials for some time. While Chairman Wyden indicated he could consider short-term options, he has not indicated whether he would support the anti-inversion proposal introduced in May 2014 by his colleague, Senator Carl Levin (D-MI)—read TaxNewsFlash-United States.




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