Pam Olson Says Fewer US Companies Going Offshore

by Mike Godfrey, Tax-News.com, Washington

23 October 2002

Speaking to a Senate Appropriations Subcommittee on Treasury and General Government last week, Assistant Treasury Secretary, Pamela Olson revealed that the stream of US companies choosing to relocate offshore has slowed as a result of public and political condemnation of the practice.

Although neither the House of Representatives nor the Senate managed to get any legislation against companies which perform corporate inversions into law before the recess for the November elections - news which was received triumphantly by Center for Freedom and Prosperity president, Andrew Quinlan on Friday - Ms Olson suggested that the intense scrutiny of such companies has 'essentially brought the traffic in these kinds of transactions to a halt'.

Explaining that fewer accountants are actively recommending that their clients move their base away from the US, the Assistant Treasury Secretary told the subcommittee that: 'We are cautiously optimistic that we have turned the corner on the marketing.'

However, Ms Olson also warned last week against closing the 'loophole' which allows companies to relocate offshore too quickly, arguing that to do so 'may inadvertently result in a tax code favouring the acquisition of US operations by foreign corporations.'

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