Boston, MA 09/24/2014 (wallstreetpr) – Medtronic, Inc. (NYSE:MDT) is one of the leading medical device makers in Minnesota area. The company is planning to move its base to a new Irish address, but it may not have the last laugh due to a rule announced by Obama Commission. US has faced a lot of problems due to steps taken by various companies in order to move their base to some other country for tax saving. Recently the Treasury department of U.S. announced a new rule which would tap different companies that were still in the process of switching their nationalities for tax saving. The new rule would spare those companies that have already moved their base.
MDT’s decision to move its base to Ireland:
Irish tax laws are comparatively easier and less costly for MDT. Due to increased tax pressure in U.S. Medtronic, Inc. (NYSE:MDT) announced its intentions of becoming Irish in the month of June. The company had seen a lot of such transactions taking place in Washington for avoiding tax payments; hence, it tried to follow the foot-steps of others. It forced Jacob J. Lew, Secretary at U.S. Treasury Department to reverse himself. He said in the month of July that Treasury lacked the powers and authority to stop such initiatives of various companies. He started working on new rules in the following month in order to limit the tax savings that they generate. Congress seems deadlock on this decision.
According to Steven Rosenthal, Former Corporate Lawyer & Senior Fellow at the Urban Institute in Washington, this new rule would end the series of transactions that recently took place in America. He hopes that it would result in higher tax revenue than past. Reporters tried to get in touch with the management of Medtronic, Inc. (NYSE:MDT) to get a fair idea of company’s point of view, but no one from the management came forward to comment.
