European multinationals have launched a rearguard effort in Washington to prevent them becoming unintended victims of a US clampdown on tax-driven international mergers.
As the US administration finalises plans to curb “tax inversion” deals, big European companies that typically stay out of US politics – including Nestlé, Royal Dutch Shell, Airbus and BASF– are alarmed at the risk to their own US divisions.
US companies are using inversions to shift their addresses to countries with lower tax rates, reducing their US tax bills and putting their non-US earnings beyond the reach of the American authorities.
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