Bloomberg: Firms Shuffle Intangible Assets Abroad Despite U.S. Tax Break

President Joe Biden and other Democrats have said FDII has been ineffective and should be replaced or revamped. While the concerns they’ve voiced about FDII aren’t directly related to the overseas IP transfers among subsidiaries, the transactions are yet another example of how FDII hasn’t achieved its goal of getting U.S. companies to house key assets at home, tax practitioners say.

“You could see these disclosures as a sign Biden is right to be concerned,” said Matthew Gardner, a senior fellow at the Institute on Taxation and Economic Policy. Read more