House and Senate Bills Seek to Address Tax Evasion by Multinationals in the U.S. and Abroad.
Offshoring and Corporate ‘Inversion’ have placed Corporations Game Tax Systems Under the US Tax Microscope
The two bills introduced earlier this week in the US House and Senate aim to actually provide lawmakers in America with previously ‘unreported’ data from multinational corporations – often referred to as ‘country-by-country’ reporting information.
What does this mean for multinational corporations? The following passage from GFI sets out the scene of ‘gaming the system’ clearly:
“The effects of multinational companies gaming the U.S. and foreign tax systems by shifting profits into no-tax jurisdictions to avoid paying taxes in the U.S. and other countries in which they operate, are devastating to the U.S. tax base, and to those of developing countries,” commented Heather Lowe, Legal Counsel and Director of Government Affairs at Global Financial Integrity. “U.S. legislators cannot currently see how multinationals are arranging their affairs to game the system, and if they can’t see it, they can’t correct it. The Tax Fairness and Transparency Act and the Stop Tax Haven Abuse Act will give Members of Congress information they need to do their job and clean up the U.S. tax system, and they will benefit developing countries in the process.”
The ECA will be monitoring very closely further developments in the US and will be reporting on more outcomes to its members.
Please follow the following links if you wish:
- To read a summary of the Tax Fairness and Transparency Act:
- To download a PDF of the full text of the Tax Fairness and Transparency Act:
- To read a summary of the Stop Tax Haven Abuse Act: