US closes loopholes to curb corporate tax inversions

WASHINGTON, D.C.: The US Treasury took action on Monday (Tuesday in Manila) to halt a rising torrent of US companies moving offshore to cut their tax bills, saying the surge in so-called inversions threatened government income.

The move to close loopholes that encourage US companies to merge with a foreign firms and relocate their tax residences offshore could stifle takeovers announced this year worth hundreds of billion of dollars.