Treasury Moves To Close Dividend Tax Loophole

Law360, New York (December 4, 2013, 3:43 PM EST) -- The U.S. Department of the Treasury is taking steps to close a dividend tax loophole exploited by offshore hedge funds and non-U.S. investors, it announced Wednesday.

The proposed regulations are piggybacking on a law passed by Congress in 2010 that began the process of halting the widely used loophole, amending portions of the Internal Revenue Code to stop the use of dividend equivalents to evade taxes.

“Treasury’s proposed regulations … would align the taxation of dividend equivalents with the taxation of dividends from sources within the...
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