Company News | | Sep 11, 2020
The Internal Revenue Service released final regulations Tuesday for the base erosion and anti-abuse tax, or BEAT for short, a part of the Tax Cuts and Jobs Act of 2017 that is supposed to discourage multinational corporations from shifting their profits overseas to avoid taxes.
The BEAT regime focuses on large U.S. corporations that make deductible payments to related foreign parties as a strategy for tax avoidance. As the regulations were being finalized, corporate tax professionals asked for more guidance and leeway in areas such as gross receipts, the base erosion percentage, aggregate groups and rules relating to short taxable years. (Read More)