US taxman relaxes company loan rules

The US taxman has relaxed loans rules to help companies deal with the tough credit market.

Businesses that received loans from their foreign subsidiaries would have to pay a 35% tax if the loan was not repaid after 30 days, however the Internal Revenue Service has pushed that out to 60 days, reported WebCPA.

'Recently, circumstances affecting liquidity have made it difficult for taxpayers to fund their operations,' reported the notice.

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