Tax Liability

Obama’s Anti-Abuse Rules Slashed Tax-Motivated Inversions

Obama’s Anti-Abuse Rules Slashed Tax-Motivated Inversions

An inversion arises when a U.S. corporation either creates a foreign corporation to be its new parent or merges into a smaller existing foreign corporation.  After the inversion, the combined firm can lower its U.S. tax bill by shifting profits abroad, either through inter-corporate transactions or increased operations abroad. 

Are Peruvian Chickens Cash?

Are Peruvian Chickens Cash?

The Tax Cuts and Jobs Act (TCJA) is plagued by a recurrent problem: Many parts of the law tax similar income or assets at different rates. That tendency has created an enormous mess with the tax treatment of pass-through businesses, where certain income from certain taxpayers enjoys a 20 percent individual income tax deduction while similar income from other taxpayers does not.