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U.S. Treasury to tighten corporate tax inversion rules -letter

WASHINGTON (Reuters) – The U.S. Treasury Department this week will clamp down further on tax-avoiding “inversion” deals done by U.S. companies with foreign rivals, according to a letter obtained by Reuters on Wednesday.

With a major inversion deal in the works between U.S. drug maker Pfizer Inc and smaller Irish competitor Allergan Plc, Treasury said in the letter, “Later this week, we intend to issue additional targeted guidance to deter and reduce further the economic benefits of corporate inversions.”

Details were not spelled out in the letter, which was addressed to four lawmakers, comprising U.S. Senators Ron Wyden and Orrin Hatch and Representatives Kevin Brady and Sander Levin.

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