Virginia Chamber strongly opposes new rules and recently expressed our opposition in a letter to Senators Warner and Kaine

Last month, the Treasury Department issued notice that, effective immediately, tax rules would be tightened in an effort to deter U.S. companies from moving their legal headquarters to lower-tax countries, part of a White House effort to slow a wave of so-called corporate inversions that effectively reduce federal revenues.

Specifically, the notice:

•          Prevents inverted companies from accessing a foreign subsidiary’s earnings while deferring U.S. tax through the use of creative loans.

•          Prevents inverted companies from restructuring a foreign subsidiary in order to access the subsidiary’s earnings tax-free

•          Prevents inverted companies from transferring cash or property from a CFC to the new parent to completely avoid U.S. tax.

•          Makes it more difficult for U.S. entities to invert by strengthening the requirement that the former owners of the U.S. entity own less than 80 percent of the new combined entity

Click here to view the Treasury Department’s fact sheet on the actions.

The Virginia Chamber is strongly opposed to the new rules and recently expressed our opposition in a letter to Senators Warner and Kaine. You can view the letter here.