Business Groups Sue Over Inversion Laws: wochit Business

wochit Business

Published on Aug 4, 2016

Two business groups sued the Obama administration on Thursday over a crackdown on U.S. companies that try to reduce their U.S. taxes by rebasing abroad in a process known as inversion. The U.S. Chamber of Commerce and the Texas Association of Business filed a lawsuit in Texas federal court that said a regulation from the U.S. Treasury Department in April exceeded what the law allows the department to do. The lawsuit was the first to challenge a rule on inversion. The deals are legal, but have drawn criticism from some politicians who say U.S. companies that do them are avoiding their tax obligations. A wave of inversions largely ended after Treasury moved against the deals. The rule targeted by the lawsuit is aimed at transactions involving non-U.S. companies, such as Ireland-based drugmaker Allergan Plc that have grown through a series of acquisitions.
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