Obama: "tax evasion is a big global problem"

President Obama warned, "tax evasion is a big global problem", and called on Congress to take action to eliminate tax loopholes.

"A lot of this is legal, but it is a problem," he said.
His comments come a day after the US Treasury announced new plans to prevent tax avoidance transactions, known as inversions.

Inversion associated American company merger with the company in a country with a lower tax rate and are becoming increasingly popular.

"These companies get all the rewards to be an American company, is not fulfilling its obligation to pay their fair share of taxes," Obama said.

The President called inversions "insidious loophole", and said that the company that made it was "game" the system.

The Ministry of Finance has taken measures to prevent the double inversions. His latest move focuses on the practice known as stripping income where the company uses internal loans to move money out of the United States in its foreign operations.

Inversion deals

Inversion of the transaction are not new but have gained more public attention in recent years.
Allergan shares fell 16% after the Treasury announcement, as investors feared that the new rules will lead Pfizer to drop $ 160 billion inversion contract with the Irish-based firm.

In accordance with the terms of the deal Pfizer will buy Allergan - Dublin- based on Botox maker- and move its headquarters to Ireland, where the corporate tax rate is 12.5%.

The corporate tax rate in the US is more than 30%.

In 2014, in another recent deal inversion, Burger King bought the Canadian coffee and donut chain Tim Horton.

Joint Group moved its headquarters in Ontario, Canada, where the corporate tax rate is 26.5%.
Over the weekend a massive leak of data in a Panamanian law firm identified a number of world leaders, as well as authorized by the corporation, using offshore accounts to hide money and avoid taxes.