The U.S. Treasury Department exceeded its authority by proposingwide-ranging regulations intended to curb corporations' abilityto shift their American earnings overseas, tax lawyers told agencyofficials during a hearing last week.

Their complaints added to a growing corporate backlash againstthe so-called earnings-stripping regulations, which broadly aim tocurb loans from foreign companies to their U.S. subsidiaries. Suchloans, which allow for moving U.S. income overseas viatax-deductible interest payments, represent a key tax-cuttingstrategy for U.S.-based companies that have moved their taxaddresses offshore.

But the rules are written so broadly that they also hit dailyinternal financing operations in global companies that aren'tavoiding taxes, according to several letters sent to the Treasuryas public comments on the proposal.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.