U.S. Senator Wyden Introduces Legislation to Counter the Avoidance of Tax by Using Derivative Contracts

U.S. Senate Finance Committee Chair Ron Wyden (D-OR) has issued a release announcing the introduction of the draft Modernization of Derivatives Tax Act on 5 August 2021, which includes measures to counter the avoidance of tax through the use of derivative contracts.

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MODERNIZATION OF DERIVATIVES TAX ACT OF 2021

Under current law, tax pros are able to exploit the complex rules for derivatives to delay paying taxes or minimize what they do pay, in ways that typical working Americans who…