Stopping Corporate Tax Avoidance: New Rules for Company Inversions.
This bill tightens tax rules to prevent large U.S. companies from moving their legal headquarters overseas solely to avoid paying U.S. corporate taxes (known as inversions). It introduces stricter definitions, ensuring that a foreign company largely controlled and operating within the United States is treated as a domestic company for tax purposes. While directly affecting corporations, the goal is to increase federal revenue, potentially supporting public services funded by taxes.
Key points
The definition of an "inverted corporation" is strengthened, making it harder for companies to successfully move their tax domicile abroad while maintaining U.S. operations.
New tests are established: if more than 50% of the stock or the primary management and control is located in the U.S., the company is taxed as a domestic entity.
The changes apply retroactively to transactions completed after May 8, 2014.
Status:
Expired
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