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Calls for foreign cash transparency
More US companies are being asked to reveal how much cash they hold overseas by the Securities and Exchange Commission (SEC). Income earned abroad is taxed at rates of up to 35 per cent when it is brought back into the US, prompting many firms to leave it sitting in foreign accounts. Companies are not currently obliged to reveal their holdings with foreign banks. Regulators fear that the status quo may be diverting investment out of the US, prompting a desire for greater transparency. The Obama administration has signalled it is unwilling to bow to pressure to curb repatriation taxes.