Article
President Trump recently announced his intention to establish a new agency, the International Revenue Service (IRS), aimed at curbing tax evasion resulting from foreign investments. According to the President, this new service will deal solely with levying taxes and collecting revenue from foreign sources, focusing on companies with international operations to ensure all legitimate revenues are reported accurately and in full.
The ultimate goal of the IRS will be to prevent tax evasion, limit corporate tax avoidance, and encourage efforts toward paying taxes fairly. By better monitoring international transactions, the service will aim to generate additional revenue for the American government, reducing the deficit and potentially lower taxes for those who comply with the existing system.
This system is expected to complement existing tax treaties and agreements with other countries, establishing a unified set of rules regarding the reporting, auditing, and taxation of foreign investments. President Trump believes this new agency will create a level playing field, putting an end to the practice of using offshore tax havens to avoid paying taxes.
Currently, the IRS operates within the framework of the United States Internal Revenue Code, and its primary role is domestic. However, with the increasing volume of international transactions and the increase in global commerce, it has become evident that the service’s scope must be expanded to cover foreign investments. By doing so, the government aims to address the growing concerns of citizens that US corporations are not paying their fair share of taxes.
To achieve this expansion, Trump administration officials stress that this new agency will not seek to complicate existing international tax treaties or agreements. Instead, it will work collaboratively with international organizations and other countries, fostering trust and cooperation to create a transparent tax environment.
Exponents of the International Revenue Service assert that the establishment of this new tax body will bring several benefits. Firstly, it emphasizes the importance of fair competition and equal opportunities for all companies, regardless of their size or origin. Additionally, it will provide a comprehensive monitoring system, contributing to a sound fiscal situation for the United States government.
In summary, President Trump’s announcement regarding the establishment of the International Revenue Service signifies a positive step towards a more equitable and transparent tax system for businesses operating at an international level. This move aims to prevent tax evasion and promote fair competition by fostering international cooperation and collaboration.
