US REFORMS
Congress to debate firms’ corporate tax avoidance schemes
Washington — US President Donald Trump and Republican leaders in Congress will soon confront a complex challenge for tax reform: how to limit US corporate tax avoidance schemes that take advantage of low tax rates in foreign countries. Congressional and administration staff have begun to examine options to address profit-shifting schemes that include so-called transfer pricing, earnings stripping and tax inversions. A decision on how to handle these in tax legislation could come before Congress leaves town for its one-week July 4 recess on June 29, officials and lobbyists said. Legislators said the current tax code incentivised profit shifting overseas due to the high 35% US corporate income tax rate and rules that allow firms to hold profits abroad tax-free until returned to US soil. Without effective measures against tax avoidance, experts and lobbyists said tax legislation could trigger a new exodus of income and assets abroad. Because Trump and Republicans in Congress also want ...
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