U.S. Treasury Sec. Jack Lew Unveils Plan to Limit Inversions
2014-09-22 22:00:00.20 GMT
By Derek Wallbank and Richard Rubin
Sept. 22 (Bloomberg) -- “Now that it’s clear Congress
won’t act before the lame-duck session, we’re taking initial
steps,” Treasury Sec. Jack Lew tells reporters on conference
call.
* In fact sheet, Lew says proposal is designed “to
meaningfully reduce the number of corporate inversions, and
when possible, eliminate them altogether”
* Provisions include
* Prohibition on “hopscotch” loans that let companies
access foreign cash without paying U.S. taxes
* Limit on “spinversions”, in which U.S. companies make
special dividends to get small enough before a merger to
meet current law requirements
* Rules to make it harder harder for inverted companies to
relinquish control of their foreign subsidiaries
* Lew plan wouldn’t retroactively impact completed inversions;
Treasury says applies only to deals closed today or after
* Treasury says in statement it will “continue to examine
ways to reduce the tax benefits of inversions, including
through additional regulatory guidance as well as by
reviewing our tax treaties and other international
commitments
* NOTE: House Speaker John Boehner has resisted stand-alone
legislation intended to curb inversions, saying it should be
done through broader revamp of U.S. tax code
* Anti-inversion bills incl. S. 2786 from Democratic Sens.
Chuck Schumer and Dick Durbin, S. 2360, H.R. 4985, S.
2489, H.R. 4679
Link to Treasury Fact Sheet
Link to Full Story
For Related News and Information:
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--With assistance from Ian Katz in Washington.
To contact the reporters on this story:
Derek Wallbank in Washington at +1-202-654-1240 or
dwallbank@bloomberg.net;
Richard Rubin in Washington at +1-202-654-7307 or
rrubin12@bloomberg.net
To contact the editors responsible for this story:
Nicholas Johnston at +1-202-654-1264 or
njohnston3@bloomberg.net
2014-09-22 22:00:00.20 GMT
By Derek Wallbank and Richard Rubin
Sept. 22 (Bloomberg) -- “Now that it’s clear Congress
won’t act before the lame-duck session, we’re taking initial
steps,” Treasury Sec. Jack Lew tells reporters on conference
call.
* In fact sheet, Lew says proposal is designed “to
meaningfully reduce the number of corporate inversions, and
when possible, eliminate them altogether”
* Provisions include
* Prohibition on “hopscotch” loans that let companies
access foreign cash without paying U.S. taxes
* Limit on “spinversions”, in which U.S. companies make
special dividends to get small enough before a merger to
meet current law requirements
* Rules to make it harder harder for inverted companies to
relinquish control of their foreign subsidiaries
* Lew plan wouldn’t retroactively impact completed inversions;
Treasury says applies only to deals closed today or after
* Treasury says in statement it will “continue to examine
ways to reduce the tax benefits of inversions, including
through additional regulatory guidance as well as by
reviewing our tax treaties and other international
commitments
* NOTE: House Speaker John Boehner has resisted stand-alone
legislation intended to curb inversions, saying it should be
done through broader revamp of U.S. tax code
* Anti-inversion bills incl. S. 2786 from Democratic Sens.
Chuck Schumer and Dick Durbin, S. 2360, H.R. 4985, S.
2489, H.R. 4679
Link to Treasury Fact Sheet
Link to Full Story
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Ian Katz in Washington.
To contact the reporters on this story:
Derek Wallbank in Washington at +1-202-654-1240 or
dwallbank@bloomberg.net;
Richard Rubin in Washington at +1-202-654-7307 or
rrubin12@bloomberg.net
To contact the editors responsible for this story:
Nicholas Johnston at +1-202-654-1264 or
njohnston3@bloomberg.net