Hatch Statement on Latest Anti-Inversion Tax Guidance from Treasury

Senate Finance Committee Chairman Orrin Hatch (R-Utah) issued the following statement after the U.S. Treasury Department announced new targeted guidance on corporate tax inversions:

“A pure anti-inversion approach may have the unintended consequence of encouraging more acquisitions of United States companies by foreign-owned firms.  With the American tax system already favoring foreign takeovers, we need to chart a course that tips the balance away from inversions and foreign takeovers.

“While the best way to resolve these issues would be through a comprehensive tax overhaul that lowers the corporate tax rate and shifts the U.S. to a territorial tax system with base erosion protections, it’s imperative we explore what actions can be taken now. That Treasury has opted to, once again, issue guidance meant to curb inversions only further demonstrates the critical need to update our outdated tax laws and create an economic landscape that not only retains the best and brightest businesses in the world, but also encourages investment here at home.

“The Administration’s approach to this issue must be carefully scrutinized. And, in my view, any permanent solution to combatting inversions should be legislated by Congress. For that to happen, we must have strong leadership from the White House to forge bipartisan compromise. Only by working together can we keep our nation’s tax system globally competitive.”