RPT-U.S. Senate panel to debate wave of corporate tax-avoidance deals
(Repeats story published late on Monday)
By Kevin Drawbaugh
WASHINGTON, July 21 (Reuters) - As more U.S. corporations do deals to cut taxes by shifting their tax domiciles overseas, the Senate Finance Committee will hold a hearing on Tuesday focused on these transactions known as inversions.
Nine such deals have been agreed to this year by companies ranging from banana distributor Chiquita Brands International, Inc to drugmaker AbbVie Inc and more are being considered. The transactions are setting a record pace since the first inversion was done 32 years ago.
Witnesses at the Senate Finance Committee's hearing will include government officials and academics. Chairman Ron Wyden, a Democrat from Oregon, is expected to call for stand-alone legislation to respond to the flurry of inversions that has Washington on edge.
Democrats, searching for campaign issues before November's congressional elections, have jumped on inversions, and several of them have offered bills that would curb the deals.
But no new law is likely to result as long as Republicans contend that inversion rules need to be part of a broader overhaul of the tax code, policy analysts said.
The Republican-controlled U.S. House of Representatives will not act on inversions "unless there's comprehensive tax reform, and that's dead for this year," said Greg Valliere, chief political strategist at Potomac Research Group in a client note on Monday.
Inversions are still rare, but they are becoming more common. Of the roughly 60 deals done since 1982, more than half have come in just the last six years, a Reuters review showed. Continuación...