Treasury Urged to Withdraw Obama-Era Anti-Inversion Debt Rules

The Trump administration should withdraw Obama-era regulations aimed at cracking down on certain debt-related transactions used to avoid tax, a business group said.

The regulations under Section 385 “disrupt normal, routine business activities and create real economic harm,” the Global Business Alliance wrote in a letter addressed to Treasury Secretary Scott Bessent dated Feb. 26. The GBA is a trade association that represents international companies’ interest in the United States.

These rules, the group argued, are a “significant departure” from law dictating the classification of debt and equity.

Section 385 is a part of the tax code that gives the ...