Government Information

Earl Gregg Swem Library

Fact Sheet: Treasury Issues Inversion Regulations and Proposed Earnings Stripping Regulations

Categories: Business/Economics,Headlines,Taxes

Announces new regulations aimed at stopping inversions in which U.S. firms are merged with foreign firms to reduce U.S. taxes.  The latest proposed rules are aimed at “earnings stripping” where the U.S. subsidiary takes out a loan from the parent foreign company and then deducts interest payments from its taxable income.  From the Treasury Department