President Barack Obama on Tuesday praised the Treasury Department’s proposed new rules aimed at curbing corporate inversions, a tax strategy he called “one of the most insidious loopholes out there.”
Pfizer Inc. and Allergan Plc offered their own response to the rules, scuttling a proposed $160 billion merger. The pharmaceutical companies said the new rules drove their decision.
The Treasury Department’s proposal would limit companies’ ability to execute inversions if they’ve already participated in one within the last three years.
Allergan, based in Ireland, has played a part in multiple inversions, which involve American companies adopting foreign tax addresses to reduce their tax liability in the U.S.
Read more: Bloomberg