Obama haunted by Delphi Automotive UK address move tax-loop trick
When Barack Obama helped Delphi Automotive to stay afloat in 2009 by conducting a cunning tax trick, he must have known it would come back to bite him in the ass at some point – and sure enough, it looks like it just has.
The Obama administration is on the war path, blasting US companies who seek to cut their US tax bills by acquiring foreign firms in places with lower tax. The President has called them “corporate deserters”. But as Bloomberg pointed out, the same administration helped Delphi do just that five years ago – aiding the Detroit-based company to move its paper headquarters to the UK, saving it a potential $110m a year.
Those who helped Delphi secure this tax-loop are now trying to revoke it, telling Delphi in June, it’s change of address would be disregarded.
Easy come, easy go.