The Treasury department plans to crack down on American companies that reincorporate overseas as a way to avoid paying taxes.
Treasury Secretary Jacob Lew announced Monday that new rules will help close the "glaring loophole in the U.S. tax code" that allows an American business to acquire a foreign company in order to switch its citizenship and avoid U.S. taxes. One target is "hopscotch" loans, where companies are able to get around paying taxes on dividends by loaning their earnings to the foreign company, USA Today reports. Those will now be taxable in the U.S. A requirement that the company's former owners own less than 80 percent of the new company is also being strengthened.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
Does depopulation threaten humanity?Talking Points Falling birth rates could create a 'smaller, sadder, poorer future'
-
New White House guidance means federal employees could be hearing more religious talk at workThe Explainer Employees can now try to persuade co-workers of why their religion is 'correct'
-
Real-life couples creating real-deal sparks in the best movies to star IRL partnersThe Week Recommends The chemistry between off-screen items can work wonders
-
Judge halts GOP defunding of Planned ParenthoodSpeed Read The Trump administration can't withhold Medicaid funds from Planned Parenthood, said the ruling
-
Trump contradicts Israel, says 'starvation' in GazaSpeed Read The president suggests Israel could be doing more to alleviate the suffering of Palestinians
-
Trump executive order targets homelessSpeed Read It will now be easier for states and cities to remove homeless people from the streets
-
Columbia pays $200M to settle with White HouseSpeed Read The Trump administration accused the school of failing to protect its Jewish students amid pro-Palestinian protests
-
Florida judge and DOJ make Epstein trouble for TrumpSpeed Read The Trump administration's request to release grand jury transcripts from the Epstein investigation was denied
-
Trump attacks Obama as Epstein furor mountsSpeed Read The Trump administration accused the Obama administration of 'treasonous' behavior during the 2016 election
-
Trump administration releases MLK filesSpeed Read Newly released documents on the 1968 assassination of the Rev. Dr. Martin Luther King Jr. did not hold any new revelations, King historians said
-
Japan's prime minister feels pressure after election lossesSpeed Read Shigeru Ishiba has vowed to remain in office
