Tax inversions set off alarm bells

|By:, SA News Editor

The Obama administration is calling for new legislation that will limit the benefits for U.S. companies to reincorporate overseas for tax benefits.

In the last decade, 50 U.S. firms have relocated for tax inversions.

As a result, Treasury Secretary Jacob Lew has written to congressional tax-writing committees stating lawmakers "should enact legislation immediately…to shut down this abuse of our tax system."

Authorities are still hopeful that a comprehensive tax rewrite can also limit inversions on a retroactive basis.