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Competitiveness Index

International Tax News Blog

  • Levin, Van Hollen Introduce Stop Corporate Expatriation and Invest in Americas Infrastructure Act

    by House Ways & Means Cmte Dems (website)

    Today Maryland Congressman Chris Van Hollen, Ranking Member of the House Budget Committee, and Congressman Sander Levin, Ranking Member of the Ways and Means Committee, introduced the Stop Corporate Expatriation and Invest in America’s Infrastructure Act. This legislation will put an end to corporate expatriations and devote the resulting revenue to the Highway Trust Fund. It will raise $19.5 billion in revenue over ten years and keep the Trust Fund solvent as Congress works on a long-term funding solution.
    For the release, go here.

    By House Ways & Means Cmte Democrats, posted on Monday June 30, 2014
  • UPDATE 2-Obama rails against corporate maneuver to evade U.S. taxes

    by Jeff Mason (Reuters)

    U.S. President Barack Obama on Thursday hammered U.S. companies that avoid federal taxes by shifting their tax domiciles overseas in deals known as "inversions" and called on Congress to pass a bill to curb the practice.
    During remarks to a rowdy crowd at the Los Angeles Technical College, Obama promoted what he called "economic patriotism" and made clear he believed the companies that were engaging in such practices were not being patriotic. The president was in California on a three-day fund-raising swing for Democrats.
    For the story, go here.

    By Jeff Mason, posted on Friday July 25, 2014
  • Obama to Make Tax Avoidance Campaign Issue

    by Bloomberg

    President Barack Obama plans to go on the offensive against companies that use cross-borders mergers to escape U.S. taxes, accusing them of essentially renouncing their citizenship to shield profits.

    For the story, go here.

    By Bloomberg, posted on Thursday July 24, 2014
  • Obama Administration Presses for Retroactive Legislation on Tax Inversions

    by David Gelles (DealBook)

    The Obama administration is continuing to make its case for legislation that would retroactively strip the tax advantages away from many of the year’s biggest mergers and acquisitions.
    On Thursday, Mark J. Mazur, the Treasury Department’s assistant secretary for tax policy, made the case that any new laws targeting inversions – transactions that allow American companies to reincorporate abroad – should be backdated to May 2014, potentially affecting a number of multibillion-dollar deals.
    For the story, go here.

    By David Gelles, posted on Thursday July 24, 2014
  • The Key To Avoiding Tax Inversions: Create Tax Reform That Makes U.S. Firms More Competitive

    by Mihir Desai (Forbes)

    Given a veritable flood over the last year of corporate inversions, lawmakers in Washington D.C. are debating how to respond. The arguments split, often along partisan lines, from overhauling the US corporate tax to punishing companies who choose to move elsewhere. On July 22, Mihir A. Desai, Miuzho Financial Group Professor of Finance at Harvard Business School, testified before the US Senate Committee on Finance. His message: The answer is not in restricting the ability of firms to locate where it makes sense for them to be, but rather to create tax reform that makes U.S. firms more competitive.

    For the testimony, go here.

    By Mihir Desai, posted on Thursday July 24, 2014
  • Obama Says Tax Law Needs to Stop Corporate Deserts

    by Lisa Lerer and Richard Rubin (Bloomberg Businessweek)

    President Barack Obama attacked companies that use cross-border mergers to escape U.S. taxes, accusing them of being “corporate deserters who renounce their citizenship to shield profits.”

    In remarks at a technical college in Los Angeles today, the president called for a new “economic patriotism” from companies. He also decried those that use corporate inversions to benefit economically by being in the U.S. while adding to the tax burden of middle-income families.

    For the story, go here.

    By Lisa Lerer and Richard Rubin, posted on Friday July 25, 2014
  • Stack: U.S. Defending Assets, Functions, Risks as BEPS Considers Special Measures

    by Kevin A. Bell (Bloomberg Daily Tax Report)

    As the Organization for Economic Cooperation and Development's action plan on base erosion and profit shifting considers “special measures,” a U.S. Treasury official said the U.S. would work hard in 2015 to ensure that the current arm's-length standard is clearly articulated and that profits are attributable to the place of economic activities.
    Robert Stack, deputy assistant secretary for international tax affairs, said July 24 that the place of economic activities is “where the assets, functions and risks of the multinational are located.”
    Stack said the U.S. must further ensure that any “special measures” agreed to at the OECD are firmly anchored in these principles, “and that legal and contractual relationships are ignored in determining intercompany prices only in unusual circumstances.”
    For the story, go here. (subscription required)

    By Kevin A. Bell, posted on Friday July 25, 2014
  • OECD's Hickman Outlines Debate On Risk Under Action 9 of BEPS Plan

    by Kevin A. Bell (Bloomberg Daily Tax Report)

    The new head of the Organization for Economic Cooperation and Development's transfer pricing unit addressed the “direction of travel” of Actions 9 and 10 of the international base erosion and profit shifting project.
    Andrew Hickman, who joined the OECD on May 5, said one of the issues Working Party No. 6 delegates are trying to make sense of is whether tax authorities should accept the cards that the taxpayer has dealt them and play that hand accordingly, or whether tax authorities should demand a reshuffle of the deck and start from a different point.
    For the story, go here. (subscription required)

    By Kevin A. Bell, posted on Friday July 25, 2014
  • Obama Urges Quick Action to Stop 'Inversions'

    by and

    President Barack Obama threw himself into the politically charged effort to block U.S. firms from reincorporating overseas for tax reasons, calling the relocations "wrong" and urging Congress to stop them through quick-fix legislation.
    Such corporate relocations, known as inversions, could become a wild card in Washington in the coming weeks, particularly if more big companies announce plans to move before the midterm elections in November.
    For the story, go here.

    By John D. McKinnon and Siobhan Hughes , posted on Friday July 25, 2014
  • INSIGHT-Irish, Dutch, UK law firms in tax inversion beauty contest in U.S.

    by Soyoung Kim and Olivia Oran (Reuters)

    A series of European law firms are aggressively pitching low corporate taxes in their countries to prospective U.S. clients, seeking to tap into the tax inversion frenzy that has seized Corporate America in recent months.
    At least eight European law firms are pitching their services to major U.S. law firms and Wall Street banks, hoping that U.S. companies considering an inversion choose Ireland, Britain or the Netherlands for their new tax domicile, according to people with knowledge of the matter.
    For the story, go here.

    By Soyoung Kim and Olivia Oran, posted on Friday July 25, 2014