Policy Analysis

A Taxing Problem for Investors

Shareholders Increasingly at Risk from Lack of Disclosure of Corporate Tax Practices

Investors are at an increasing risk due to the lack of information disclosed by companies about their tax practices, according to this September 2016 report published by the Financial Accountability and Corporate Transparency Coalition (FACT Coalition).  Titled “A Taxing Problem for Investors: Shareholders Increasingly at Risk from Lack of Disclosure of Corporate Tax Practices,” the report finds that multinational companies have become increasingly reliant on offshore tax avoidance practices to boost short-term earnings in recent years, yet disclosure requirements haven’t kept pace with this changing world.  As governments around the globe struggle with growing budget deficits, tax authorities are increasingly cracking down on aggressive tax avoidance practices, which can have a significant impact on shareholder value.

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FACT Sheet: Anonymous Shell Companies

Enabling Criminal Activity in the U.S. and Around the World

America is one of the easiest places in the world in which to form an anonymous shell company—this facilitates crimes that victimize ordinary Americans.

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FACT Comments to Treasury/IRS in Support of Proposed ‘Serial Inverter’ Rule

Rule Would Help Address Problem of Corporate Tax Inversions

The FACT Coalition submitted comments in support of a proposal from the U.S. Department of the Treasury to combat an egregious corporate tax avoidance technique known as serial inverters.  The rule is one of two Treasury proposals aimed at combatting so-called corporate tax inversions.  FACT also submitted comments supporting the other proposal, which targets “earnings stripping.”

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FACT Comments to Treasury/IRS in Support of Proposed Earnings Stripping Rule

Rule Would Help Address Problem of Corporate Tax Inversions

The FACT Coalition submitted comments in support of a proposal from the U.S. Department of the Treasury to combat an egregious corporate tax avoidance technique known as earnings stripping.  The rule is one of two Treasury proposals aimed at combatting so-called corporate tax inversions.  FACT also submitted comments supporting the other proposal, which targets “serial inverters.”

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FACT Comments to SEC on Concept Release Urge Public Country-by-Country Reporting

Public Disclosure of Country-by-Country Tax Information Would Better Inform Investors

The Financial Accountability and Corporate Transparency (FACT) Coalition submitted comments to the U.S. Securities and Exchange Commission on Wednesday, July 6, 2016 urging that—to better inform investors—the SEC should revise its international tax disclosure framework to specifically require multinational corporations to disclose information on taxes and profits on an annual, country-by-country basis.

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FACT Urges Treasury to Act on Inversions in Letter

By Clark Gascoigne

The Honorable Jacob J. Lew
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

 

Dear Secretary Lew,

On behalf of the Financial Accountability and Corporate Transparency (FACT) Coalition, I am writing to urge the Department of the Treasury to take all measures within its authority to curtail the ability of corporations to avoid paying taxes by engaging in corporate inversions. Explicitly, FACT believes that the Treasury Department could take further steps to prevent inversions through the use of its regulatory authority under Sections 956 and 7701 of the U.S. Tax Code.

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