{"id":37375,"date":"2017-07-29T06:25:23","date_gmt":"2017-07-29T06:25:23","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=37375"},"modified":"2017-07-29T06:25:23","modified_gmt":"2017-07-29T06:25:23","slug":"u-s-government-delays-obama-earnings-stripping-rule-deadline","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/u-s-government-delays-obama-earnings-stripping-rule-deadline.html","title":{"rendered":"U.S. government delays Obama earnings-stripping rule deadline"},"content":{"rendered":"<h2 style=\"text-align: justify\"><span style=\"font-size: 18pt\"><strong><span style=\"color: #000000\">U.S. government delays Obama earnings-stripping rule deadline<\/span><\/strong><\/span><\/h2>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The U.S. government on Friday gave companies an extra year to comply with an Obama-era regulation meant to crack down on corporations that try to minimize their U.S. tax bills by shifting profits abroad to countries with lower tax rates.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The regulation, known in corporate tax circles as the &#8220;385 rule,&#8221; is intended to combat a tax-avoidance technique called earnings-stripping, in which multinational corporations transfer taxable income from a U.S. subsidiary to a foreign affiliate in the guise of tax-deductible interest payments on internal debt.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The rule, which Treasury Secretary Steven Mnuchin is now reviewing as part of the Trump administration&#8217;s push for deregulation, seeks to eliminate the incentive for earnings-stripping by reclassifying certain loans as equity under Section 385 of the U.S. tax code.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">The change converts tax-deductible interest payments employed by the schemes into taxable stock dividends.<\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"font-size: 14pt;font-family: Arial, Helvetica, sans-serif;color: #000000\">Finalized last October, the regulation required corporations to file documentation on their internal loans with the IRS by a January 2018 deadline. In a public notice issued on Friday, the Treasury and Internal Revenue Service pushed the deadline back to January 2019.<\/span><\/p>\n<p><span style=\"font-size: 8pt\">source:-http:\/\/www.reuters.com\/article\/us-usa-congress-delaney-idUSKBN1AD2E6<\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/news\/u-s-government-delays-obama-earnings-stripping-rule-deadline.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>U.S. government delays Obama earnings-stripping rule deadline The U.S. government on Friday gave companies an extra year to comply with an Obama-era regulation meant to crack down on corporations that try to minimize their U.S. tax bills by shifting profits abroad to countries with lower tax rates. The regulation, known [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":37377,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[7945,6028,29289,6984,29288,6171,25483,13007],"class_list":["post-37375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-company-news","tag-corporate-events","tag-economic-events","tag-financials-legacy","tag-financials-trbc","tag-government-politics","tag-judicial-process-court-cases-court-decisions","tag-taxation"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/37375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=37375"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/37375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/37377"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=37375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=37375"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=37375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}