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.

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

Share this

Share this


Current and future KPMG clients may subscribe to TaxNewsFlash email alerts.

Email your contact information.

TaxNewsFlash-United States by year