(Adds details and background)
By Patrick Temple-West
WASHINGTON May 8 U.S. Democratic Senator Carl
Levin on Thursday said he plans to introduce legislation soon to
prevent corporate inversions, an increasingly-popular
transaction that involves U.S. companies reincorporating
overseas to avoid U.S. taxes.
Levin, a long-time advocate for closing corporate tax
loopholes, said he is talking with other senators about
"It's become increasingly clear that a loophole in our tax
laws allowing these inversions threatens to devastate federal
tax receipts. We have to close that loophole," said Levin in a
Levin is the chairman of the Senate Permanent Subcommittee
on Investigations, which has held hearings to shed light on U.S.
companies' legal efforts to avoid U.S. taxes.
A recent bid from drug-maker Pfizer Inc to acquire
AstraZeneca Plc, renewed attention on corporate
inversions. The potential deal would allow U.S.-based Pfizer to
re-domicile in Britain to take advantage of a significantly
lower corporate tax rate there.
In April, days after the potential Pfizer deal was made
public, the Obama administration said it was seeking ways to
(Reporting by Patrick Temple-West; Editing by Chris Reese and