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Obama Administration Seeks to Curb Corporate Inversions

In a move that could impact larger corporations and a tax loophole that's been gaining in popularity in recent years, Treasury Secretary Jack Lew called for action – by his own department or by Congress – to stem the tide of corporate inversions, which the White House considers a tax dodge. So reports Reuters.

Inversions are a form of incorporation whereby U.S. companies (mainly multinationals) purchase a non-U.S. firm and "reincorporate" themselves based in the country of the acquisition – which invariably has lower corporate tax rates.

Most recently, Burger King has taken steps to become a Canadian corporation through its planned acquisition of Canada-based coffee-and-donut chain Tim Hortons. Some lawmakers in Congress are trying to introduce bills to discourage inversions, while others feel they should be dealt with as part of comprehensive tax reform.

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