Okay, so it's no longer attractive to merge two large companies, then set sail for cheaper shores. You probably weren’t planning to anyway. But what most CEOs don’t realize is that the Tax Inversion Rule has additional ramifications that could affect all companies.
New global digital business models are a source of acute tax uncertainty today. Simple tax questions—where did this transaction take place? Where was this software developed? Can have complicated answers in an interconnected world.
By now, American companies seeking to lower corporate taxes by merging with foreign-based outfits—in so-called “tax inversion” deals—have become political punching bags.
You may have thought this trend was behind us, but “tax inversion” acquisitions are still going on across America’s borders, despite U.S.-government efforts to curb them. As a result, many boards are still faced with the difficult choice between shareholder value and patriotism.
Leaders must always look ahead and take action today against what seems like an uncertain tomorrow.
If the U.S. middle market—which employs 32 million people—were a country, it would have the 4th largest GDP in the world, according to commercial lender CIT. In addition, it takes in more than $6 trillion in revenues and creates 25% of all U.S. jobs. Based on its size, it would not be difficult for the middle market to effect change, and when it comes to corporate taxes, that’s exactly what the collective group is trying to do.
With more and more small to medium sized companies operating across borders, many are falling victim to increasingly complex international tax rules. Here’s how to get it under control.
When deciding where to establish or relocate a business, tax rates, credits, and incentives are an important consideration. And as corporate and income tax rates vary by state, it's crucial to know the landscape before entering a market. Here's an in-depth guide and what you should focus on.
Half of the nearly 3,000 US federal, state and local tax credits and incentives go unclaimed, and it pays to learn how well your company is capturing these opportunities.
All politics is the art of deception, none more so than the oft-repeated claim about "tax cuts for the rich." First, the extension of the rate cuts of 2003 that President Obama grudgingly agreed to in exchange for an extension of unemployment benefits is not in any way a reduction of income tax. The only question was whether everyone’s tax liability was going to increase in January.
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