News Headlines Article

Obama champions new tax inversion rules, calls on Congress to act
Modern Healthcare

President Barack Obama commended the U.S. Treasury Department for putting rules in place aimed at limiting tax inversions, but ultimately called on Congress to definitively close the loopholes.

The new rules could impact New York-based Pfizer’s planned acquisition of Allergan, based in Dublin. The companies said they are reviewing the rules, which would limit internal corporate borrowing that shifts profits out of the U.S.

Tax inversions occur when a U.S. company acquires a foreign company and moves their headquarters overseas to enjoy a lower tax rate. The deals have become increasingly common among pharmaceutical companies.

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