A former Treasury official says the Obama Administration could invoke a 1969 tax law to slow down an onslaught of corporate inversions, in which U.S. companies reincorporate abroad to save on taxes, Bloomberg News reports.
Stephen Shay, former deputy assistant Treasury secretary for international tax affairs in the Obama administration, said that by using the law, the president could sidestep Congress and stop United States companies with foreign tax addresses from using inter-company loans and interest deductions to save on American taxes, according to Reuters. This would allow the government to reduce the number of inversions without taking legislative action, Shay says.
