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Wall Street Fears New International Tax That Was Aimed at Tech

July 30, 2018, 11:48 AM

A new international tax that was supposed to deter U.S. technology and pharmaceutical companies from shifting their profits offshore could instead catch Wall Street banks in its crosshairs.

The levy on international profits -- called Gilti -- is only supposed to kick in if a company is paying an especially low tax rate in foreign countries. But quirks in the way the tax is calculated mean it will likely hit big banks with offshore operations, even when they already pay effective foreign tax rates above the threshold.

Bank lobbyists are now urging the Treasury Department to come up with a...

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