Treasury Secretary Jacob Lew Unveils Steps to Curb Tax Inversions

Treasury Secretary Jacob Lew announced in a press conference Monday evening that revisions are being made to five sections of the U.S. tax code in an effort to discourage U.S. companies from moving their headquarters overseas to lower their tax bills in tax inversion deals. The revisions include a ban on 'hopscotch loans,' made to foreign parent companies to avoid U.S. taxes on foreign earnings, the elimination of tax benefits when U.S. companies spin off units into a foreign company, and the closing of a loophole that allowed a tax-tree transfer of cash or property from a subsidiary to a foreign parent.