TaxCorporate TaxUS plotting overseas tax break clampdown

US plotting overseas tax break clampdown

Obama administration to crack down on US-based multinationals that transfer brands and patents to foreign affiliates, paying little tax overseas

The US government has unveiled plans for a new crackdown on tax avoidance.

It is hoped the move will put a dent in the country’s deficit which stands at
a record $1.56 trillion (£0.93trillion) this year.

Under the plan, US-based multinationals that transfer brands and patents to
foreign affiliates that pay little tax overseas- known as transfer pricing-
would pay a surcharge on the excess returns on those assets,
the
FT reported
.

The administration also went a step further by announcing a potential
crackdown on companies’ rights to take immediate tax deductions on the interest
payments when borrowing cash to invest overseas.

Further reading:

HMRC
pursues tax avoiders in transfer pricing clampdown

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

1m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

1m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

3m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

4m Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

8m Alia Shoaib, Reporter