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Jeff Paravano Comments on Potential Revision of Tax Code by Trump Administration

News / May 16, 2017

Partner Jeff Paravano is quoted in an article published May 12, 2017, by Tax Analysts’ “Tax Notes.” The article, “Trump Dismisses Border Adjustability, Eyes Interest Deductibility,” discusses the evolving parameters of tax reform plans under consideration by the Trump administration as proposals move forward toward the adoption by the United States of a territorial system of taxation. Paravano’s comments are in response to statements by President Trump and Treasury Secretary Mnuchin that the current process for repatriating profits of U.S. companies is too complicated. Paravano explained to Tax Analysts, “There is significant complexity in the current tax code, and many complicated planning strategies that may allow companies to reduce or eliminate taxation on repatriation of foreign earnings. The IRS routinely issues guidance to target what they view as aggressive foreign tax credit strategies. Under the current tax code, even routine repatriation of offshore earnings by taxpayers often involves complex tax credit calculations and disputes with the IRS regarding how much tax is due in connection with those earnings repatriations.”

Read the article.