Mnuchin May Gut Obama Rule On Offshore Tax Havens

Bloomberg reports:

Treasury Department officials are considering rolling back a tax rule aimed at preventing American companies from moving money offshore to avoid U.S. taxes, according to several people familiar with discussions.

Treasury could narrow regulations aimed at preventing U.S. firms from lowering their U.S. tax bills by borrowing from an offshore branch of the company. The department is also contemplating repealing them entirely to replace them with something more business-friendly.

The move could make it easier for companies to use accounting tactics to minimize their U.S. earnings and inflate their foreign profits, which are frequently taxed at rates lower than the current 21% domestic corporate levy. The existing regulations were aimed at stopping U.S. companies from moving their headquarters to a lower-tax country, known as a corporate inversion.

JUST IN: Treasury Department officials are considering rolling back a tax rule aimed at preventing American companies from moving money offshore to avoid U.S. taxes. https://t.co/TTbv9aL4pS

— Bloomberg Tax (@tax) October 8, 2019