US government launches measures to prevent tax leakage
The US government launches an attack on multinational companies acquiring foreign companies to transfer their tax headquarters to other countries with lower taxes.
The secretary of the US Treasury, Jack Lew, announced new regulations that hinder this type of business, called “inversion.”
“It is a first step that will make companies think better about a possible change,” said Lew.
The measures were applauded by President Barack Obama. “In the US, the hard work pays off. The responsibility is rewarded when everyone plays by the same rules,” Obama said.
Measures want to avoid tax evasion: in addition to hinder the “reversal”, the government, acting on the basis of their tax law, meant it got more difficult for multinational companies to access liquidity abroad, but without paying taxes in the US, a technique called “hopscotching”.
Another measure implemented to prevent the escape of multinationals and their rates aimed at hindering the company carried out the “spin-off” (starting a business from an existing group) of foreign subsidiaries.
“These measures will reduce the ability of companies to escape taxes in the US,” said Lew.
Since the beginning of 2013 were signed 13 agreements with value added of $ 178 billion of US companies that have used acquisitions abroad to transfer the seat and pay less tax.
According to the US Treasury, the country lost $ 20 billion due to these leaks companies abroad.
Companies criticize these measures. The United States Chamber of Commerce, business organization in the United States, attacked the standards set by the US government.
The group ranked Obama’s measures as “futile attempts”. “The US tax system is obsolete and the attempt of the Obama administration will do nothing against the tax leakage. The capital goes to where it is valued,” said Chamber of Commerce. (ANSA)
The next step is to prevent tax leakage on online platforms that sell products without paying taxes. Instead of Amazon, Ebay or Udemy* there are many small retailers that don’t pay taxes when selling online. U.S. government launches measures to prevent this tax evasion.
*Udemy is an Online platform that sells courses. The courses are created by instructors from around the world, who build the courses and send them to Udemy that, if accepted, will be published in getting its platform available for a price specified by the instructor. Examples of Udemy courses are: Selling Websites on Flippa or How to Create a Successful Kindle Business on Amazon! (free course).