WASHINGTON (Reuters) - The top U.S. tax official told U.S. board directors on Monday they must better police tax policy at their companies, and suggested that boards oversee decisions about profit allocation to low tax jurisdictions.
"In today's business climate, the general public has little tolerance for overly aggressive tax planning that can be viewed as corporations playing tax games," Internal Revenue Service Commissioner Doug Shulman told the National Association of Corporate Directors in Washington, according to a prepared text.
Shulman, under President Barack Obama, has said pursuit of tax evasion by high-wealth individuals and corporations is a major priority, as the government aims to get back the estimated $345 billion that goes uncollected in taxes each year.
Obama has proposed raising $200 billion over a decade by tightening international corporate tax rules, including those that lead to lower tax rates by utilizing overseas affiliates.
The commissioner said boards should "discourage or eliminate opinion shopping by tax departments by having an independent tax firm, which has some direct dialogue with the board" to review major tax positions.
He also said that boards should "specifically address" the "relative profit allocated to low-tax jurisdictions, and make sure they reflect the real economic contributions made in those jurisdictions."
