Carl Levin eyes bill to end corporate tax loophole

Carl Levin Image copyright Getty Images
Image caption Mr Levin has held many hearings on corporate tax with executives like Apple's Tim Cook

US senator Carl Levin has said he plans to introduce legislation into Congress that would close a loophole allowing US companies to move overseas and avoid US taxes.

The loophole - known as an "inversion" - allows US firms to reincorporate abroad, generally in an effort to avoid the US corporate tax rate of 35%.

Pfizer's bid for AstraZeneca has put renewed focus on the practice.

Mr Levin said the loophole "threatens to devastate federal tax receipts".

"Companies that exploit this loophole benefit from the protections and services the federal government provides, including patent protection, research and development tax credits, national security and more; they shouldn't be allowed to shift their tax burden onto others," he added in a statement.

He said he was speaking with other senators about the legislation.

The Obama administration has previously said that it was seeking ways to end the practice.

Mr Levin is the chairman of the Senate Permanent Subcommittee on Investigations and he has previously campaigned for closing corporate tax loopholes.

He has convened panels alleging corporate tax dodging against firms such as Apple and Caterpillar.

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