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News BritishAmerican Business Inc Cautions US Lawmakers on Proposed Tax Changes London – June 13, 2002 – BritishAmerican Business Inc (BritishAmerican Business), the leading transatlantic business organisation, has written to US lawmakers expressing its concerns over proposed tax legislation that could hinder the British-American business relationship. BritishAmerican Business is concerned that the legislation, introduced in Congress in March 2002, could inhibit US corporations from reorganising as UK entities. The proposed Corporate Patriot Enforcement Act of 2002 aims to penalise global enterprises that have “inverted” their parent companies - moved them from the US to another country. The main worry is that no distinction is made between tax havens and countries, such as the UK, which have tax rules similar to those in the US. “If Congress wants to stop corporate inversions undertaken for tax purposes, they must be very careful,” said Jefferson VanderWolk, Chairman of BritishAmerican Business’s Tax Forum. “It would be wrong - not to mention counter-productive - to lump countries such as the UK in with tax havens. Transatlantic business requires tax rules that give businesses the flexibility to adopt the legal form most appropriate to their situation.” The letter, addressed to leading members of the Senate Finance Committee, the House Ways and Means Committee and the Treasury Department, also calls on US lawmakers to revise existing international tax regulations to make them less complicated and more competitive with the corporate tax rules of countries such as the UK and the Netherlands. This would address the reasons why US companies look to invert, and would encourage businesses to locate more functions in the US.
“The US rules are overly restrictive and create too many burdens,” said VanderWolk. “As business globalises, the US should be making its tax rules more business-friendly in order to make it an attractive place to base a holding company.”
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About BritishAmerican Business Inc BritishAmerican Business Inc of New York and London (BritishAmerican Business) is the leading transatlantic business organisation, dedicated to helping its 1,000 member companies build and expand their international business. BritishAmerican Business provides its members directly with a range of targeted business services focused on business development, business intelligence and networking, and with access to broader business networks in more than 60 other major cities throughout North America and Europe. BritishAmerican Business incorporates the British-American Chamber of Commerce (New York/London) and the American Chamber of Commerce (UK), which merged in September 2000 to create a stronger transatlantic business organisation. For further information, please contact:
Emma Abbott BritishAmerican Business Inc Tel: 020 7467 7437 Fax: 020 7495 7828 Email:
eabbott@BritishAmerican Businessnc.org | 
