The US has “virtually unlimited power” to turn your debt into equity
The US government recently issued regulations to counter tax inversions and earnings stripping, but also appeared to claim powers to delve into your balance sheet and characterise debt as it pleases.
The US Department of Treasury and Inland Revenue Services (IRS) in early April released proposed regulations to combat companies avoiding tax by moving their headquarters abroad. However, certain clauses could grant the tax authority power to recharacterise debt instruments as equity for tax purposes, CT observed.
Sign in to read on!
Registered users get 2 free articles in 30 days.
Subscribers have full unlimited access to CorporateTreasurer.
Not signed up? New users get 2 free articles per month, plus a 7-day unlimited free trial.
If you are a treasurer, CFO or senior professional at a corporate or SME, please register for free VIP access here.
Questions?
See here for more information on licences and prices, or contact [email protected].
© Haymarket Media Limited. All rights reserved.
Top news, insights and analysis every Tuesday & Thursday
Free registration gives you access to our email newsletters
for unlimited access to all articles, newsletters
