US: New tax model hopes to combat profit shifting by corporations

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The Treasury Department in the US have released draft provisions laying out extensive and comprehensive amendments to its laws on double taxation treaties. The requirements attempt to reject financial aid to businesses that change their tax residence using an inversion transaction, as well as to address the abuse of any treaty provisions in order to avoid paying or even paying extremely low taxes in partner countries of the treaty, as well as the abuse of permanent establishment (PE) regulations.