U.S. Tax Reform – Border Adjustment Proposal: Current Status, and How Your Company May Be Affected

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On 24 June 2016, the Republican Speaker of the U.S. House of Representatives, Paul Ryan, and House Ways and Means Chairman Kevin Brady released a sweeping "Blueprint" proposal to reform the U.S. tax code. A critical component of the proposal is a border adjustment mechanism (border adjustment tax, or BAT). The provision, if enacted, will have profound implications for multinationals with U.S. operations, and any businesses with imports or exports to or from the U.S.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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