New Bill Would Plug an Offshore Loophole in Tax Overhaul

WASHINGTON, D.C. — House lawmakers introduced legislation Wednesday that would make it harder for multinational corporations to game the offshore provisions in the newly adopted tax overhaul.  Sponsored by Rep. Peter DeFazio (D-OR), the Per-Country Minimum Act (H.R.6015) would ensure that tax rates for profits booked offshore are applied on a per-country basis, rather than on a worldwide average basis — reducing the chance of gaming.

The measure was welcomed by the Financial Accountability and Corporate Transparency (FACT) Coalition, a non-partisan alliance of more than 100 state, national, and international organizations working toward a fair tax system that addresses the challenges of a global economy and promoting policies to combat the harmful impacts of corrupt financial practices.

Clark Gascoigne, the deputy director of the FACT Coalition, issued the following statement:

“The recent tax overhaul was so riddled with loopholes that even the measures in the bill purporting to curb the gaming have loopholes themselves.  Rep. DeFazio’s bill takes direct aim at one of those gaps.

The Per-Country Minimum Act would make it harder for multinational corporations to artificially reduce their tax liabilities by shifting profits to tax havens like the Cayman Islands.

“Requiring that tax rates apply to multinationals’ offshore profits on a per country basis is a necessary piece of any effort to end the incentive for offshore tax games.”

###

Notes to Editors:

  • Click here for an online version of this release.
  • The press release from Rep. Defazio’s office can be found here.
  • Download the full text of the Per-Country Minimum Act (H.R.6015) here.

Journalist Contact:

Clark Gascoigne
Deputy Director, The FACT Coalition
+1 202 810-1334
cgascoigne@nullthefactcoalition.org