Morning Agenda: U.S. Moves to Restrict Foreign Deals Intended to Avoid Taxes
ByU.S. MOVES TO RESTRICT FOREIGN DEALS INTENDED TO AVOID TAXES | The Treasury Department took additional steps on Monday to discourage American companies from making foreign acquisitions so that they can move overseas for a lower tax rate, Leslie Picker and Michael J. de la Merced report in DealBook. The Treasury Department had issued rules in September 2014 and in November to restrict this type of acquisition, known as a corporate inversion, but the measures announced on Monday are aimed at what the government calls “serial inverters,” or foreign companies that have bulked up through multiple deals with American companies in a short period. The new rules threaten Pfizer’s proposed $150 billion takeover of Allergan, a drug maker based in Dublin. Though the Pfizer-Allergan deal is not structured as an inversion (technically Allergan is the acquirer and Pfizer is the target), it still achieves the same goal of a lower tax rate abroad…
Morning Agenda: U.S. Moves to Restrict Foreign Deals Intended to Avoid Taxes
