Treasury Creates New Hurdles to Inversion Moves
Treasury Secretary Jacob J. Lew on Monday announced new rules aiming to make it more difficult for United States companies to relocate overseas to lower their tax bills and wipe out the benefits for those that do. It is the administration’s latest move to sidestep a paralyzed Congress and tackle a politically charged element of President Obama’s agenda.
“While there’s no substitute for congressional action, my administration will act wherever we can to protect the progress the American people have worked so hard to bring about,” Mr. Obama said in a statement after the regulations on so-called corporate inversions were announced.
The Treasury guidelines are designed to curb inversions by limiting the number of companies that can complete them, and by barring them from transactions that make the practice profitable. But the changes will only affect deals completed Monday or afterward, meaning they will not reach back to any of the high-profile inversions, such Burger King’s takeover of Tim Hortons.
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http://www.nytimes.com/2014/09/23/business/treasury-creates-new-hurdles-to-inversion-moves.html?emc=edit_na_20140922
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