US foreign tax credit claims skyrocket

The Internal Revenue Service has reported a substantial increase in the
number of US businesses and individuals claiming foreign tax credits on their

Doug Shulman, commissioner of the IRS, said the 133% increase in the number
of individuals claiming the credit between 2000 and 2007 was ‘eye-popping’,
according to

During the same period, 71% of US companies claimed foreign tax credits.

He said the figures reflect the need for the US and global tax
administrations to press on with efforts to police international tax.

‘More businesses and individuals are using the global capital markets as a
vehicle for investment, illustrating the opportunities presented by the
development of capital markets, but also some of the challenges. Regulatory
bodies and governments worldwide are wrestling with complex challenges without
easy answers,’ he said.

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