CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Stop Tax Haven Abuse Act Reintroduced In US Congress

Stop Tax Haven Abuse Act Reintroduced In US Congress

by Mike Godfrey,, Washington

07 April 2017

On April 5, 2017, US Representative Lloyd Doggett (D - TX), a senior member of the House Ways and Means Committee, and Senator Sheldon Whitehouse (D - RI), a member of the Senate Budget Committee, introduced legislation to tackle multinational tax avoidance.

In a statement, Whitehouse said the legislation seeks to "limit the ways corporations can game our tax system by moving jobs and assets abroad."

He said the bill would close a number of tax loopholes, eliminate incentives for US companies to move assets and operations offshore, and make it harder for companies to avoid US tax liabilities through cross-border mergers. "It would also give the Government new tools to crack down on the use of illegal tax shelters," he said.

The Stop Tax Haven Abuse Act would close a number of tax loopholes and help the Internal Revenue Service (IRS) identify foreign tax shelters. According to Whitehouse, the bill would discourage corporations from inverting by deeming the product of a merger between a US company and a smaller foreign firm to be a US taxpayer, no matter where in the world the new company is headquartered.

In addition, he noted that, under current law, a company can choose to defer paying taxes on profits, while deducting the expenses incurred to produce the profits. "The bill would require companies to delay taking deductions until they pay taxes on the related profits," he said.

"Right now, companies are allowed to simply "check the box" on an IRS form and pretend that some of their foreign subsidiaries don't exist for tax purposes. The bill would repeal this nonsensical rule." The bill also deem corporations worth USD50m or more that are managed and controlled in the US to be US taxpayers.

Whitehouse added that the bill would make it easier for the IRS to obtain the names of the owners of suspicious foreign bank accounts. It would also increase penalties for corporate insiders who fail to disclose offshore dealings.

TAGS: Foreign Account Tax Compliance Act (FATCA) | tax | tax avoidance | interest | FATCA | law | employees | offshore | multinationals | legislation | United States | Compliance | Tax | BEPS

To see today's news, click here.

Leave a comment

Read our Posting Guidelines



Password Reminder

Please enter your email address to receive a password reminder.


Log into Tax-News+
Not registered yet? Find out about our daily news alert service »


Login »

Forgotten your password?

Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Tax-News+ Updates

Receive FREE daily updates from, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...


Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »