CEO DATELINE - U.S. Chamber challenges tax inversion rule in court
CEO DATELINE - U.S. Chamber challenges tax inversion rule in court
- August 8, 2016 |
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Walt Williams
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The U.S. Chamber of Commerce is suing to stop implementation of an IRS rule that makes it harder for corporations to move overseas to lower their taxes.
The U.S. Department of Treasury and IRS adopted new rules this year to curb corporate tax inversions, in which a business moves its official tax residence to an overseas "tax haven" while maintaining most of its domestic operations. The issue recently gained notoriety after pharmaceutical manufacturer Pfizer officially became an Irish company after merging with Botox-maker Allergen. Critics say the move allowed the pharmaceutical giant to avoid paying $35 billion in taxes, the Washington Post reported.
The Chamber and Texas Association of Business argue in their lawsuit that Congress did not give the Obama administration the authority to eliminate corporate inversions.
"Treasury and the IRS ignored the clear limits of a statute, and simply rewrote the law unilaterally. This is not the way government is supposed to work in America," Chamber CEO Tom Donohue said.
The suit was filed in U.S. District Court for the Western District of Texas. http://uscham.com/2aGhuN5
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