US taxman cracks down on cross border bank deals

US taxman cracks down on cross border bank deals

IRS facing claims from US banks over cross border deals from which the tax authority has blocked credits

THE US TAX AUTHORITY is attempting to clamp down on what it believes is tax avoidance taking place between American and UK banks.

US banks are suing its government for more than $1bn (£640m) in tax credits, relating to deals the Internal Revenue Service has knocked back for what it believed was the creation of foreign tax credits.

Alongside the four US banks named by the FT and ProPublica joint investigation, Barclays was named as a promoter of the cross-border deals.

The transactions in the spotlight are known as structured trust advantaged repackaged securities (Stars). The report said that some of the deals of concern to the IRS saw a single tax payment create a benefit for two companies in different countries.

Barclays said it complied with tax laws in the UK and all the countries where it does business. The US banks declined to comment to the FT.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource