Treasury Unveils New Steps Aimed At Curbing Inversions

The U.S. Treasury Department on Thursday took new steps designed to discourage corporate inversions, or deals that allow companies to move their legal address abroad to avoid taxes. The Treasury steps include limiting the ability of U.S. corporations to combine with foreign entities using a new foreign parent located in a third country. Treasury said it would also limit the ability of U.S. companies to "inflate" a foreign parent corporation's size and avoid the 80% ownership rule. In a statement, Treasury Secretary Jacob Lew said additional steps were planned but also called on Congress to address the issue. "Only legislation can decisively stop inversions," Lew said.