U.S. Treasury Secretary tries to end tax inversions

American Treasury Secretary Jacob Lew is pushing Congress to pass rules that stop corporate tax inversions, reports the New York Times.

The practice, where a company buys a competitor headquartered in a low-tax jurisdiction, and then moves its own headquarters to the new country, is under scrutiny by lawmakers.

Read: What are tax inversions?

In a letter to Congress, Lew asked for rules to be passed immediately and be back-dated to May in an effort to stop a number of business deals that have already been struck, reports the Times.

“We should prevent companies from effectively renouncing their citizenship to get out of paying taxes,” he writes.

President Barack Obama and individual congresspeople have made proposals to stop tax inversions this year, but they’re all still in the early stages of becoming law.

Read more here.

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Staff

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