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Talking points

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‘The inversion virus now seems to be multiplying every few days … How many more infections can America’s economic body endure? … On a bipartisan basis, the US finance committee must respond now. First, let’s work together to immediately cool down the inversion fever. The inversion loophole needs to be plugged now. Second, let’s use the space created by these immediate steps to apply the indisputable, ultimate cure: comprehensive tax reform.’

Ron Wyden, chairman of the US Senate finance committee, calls for action to stop the inversion ‘virus’, in light of reports that more than 20 US companies are considering relocating overseas to cut their tax bills (US Senate Finance Committee hearing, 22 July).

‘The objections to this power are as valid today as they were in 2007 [when the idea was first raised] … For my money, the only potentially acceptable safeguard would be oversight (independent of HMRC) of each application for its use. Without that safeguard, this is a power too far.’

Paul Aplin, chair of the ICAEW Tax Faculty Technical Committee, commenting on HMRC’s proposed direct recovery of debts powers (Taxation, 23 July)

Issue: 1226
Categories: In brief