US moves to close tax loopholes

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I've reported here, and worked with papers like the Wall Street Journal to expose the behaviour of companies like Barclays Capital that exploit complex tax driven structures to secure themselves double tax relief on deals between the USA and elsewhere.

It's very good news to see that the the new Democrat controlled US legislature is looking at ways of stopping these abuses. As the FT reports:

The move by the Internal Revenue Service, the US tax agency, could force big groups such as Wachovia, the fourth-biggest US bank, to forgo substantial tax savings and hit the investment banks and law firms that create these complex structures, including Barclays Capital of the UK.

It added:

The US tax authorities want to target "special purpose vehicles" set up by US financial institutions outside the country in partnership with local banks in order to reduce their tax bill.

There are times when the hours spent exposing these things seems worthwhile. Let's hope this becomes law.