Move Toward Pure Territorial Tax System Should Be Rejected, Corwin Says

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The Obama administration believes any move to a pure territorial system would aggravate the problem of income shifting to foreign jurisdictions and should be rejected as tax reform efforts move forward, says Treasury Deputy Assistant Secretary for International Tax Affairs Corwin. The strong statement in opposition to a complete territorial system comes as many in the business community call for such an approach to help U.S. multinational corporations compete globally. Corwin, speaking at a conference sponsored by the USA Branch of the International Fiscal Association, says no U.S. trading partners have implemented a pure approach to a system that, in its simplest form, would tax only income earned within U.S. borders.