28 August 2014
The topic of tax incentives for US corporations seeking to “invert” and become a subsidiary of a foreign corporation is receiving heightened attention in Congress and by federal agencies. The Obama administration is presently weighing administrative actions on inversions, and it is not entirely clear what actions, if any, the US Treasury Department might take. Legal experts and others disagree about whether President Obama and Treasury Secretary Lew have the authority to write new rules to discourage inversions, and how narrowly such regulations would have to be tailored.
Mayer Brown partner and former US Republican Congressman David McIntosh and Mayer Brown senior adviser and former US Democratic Congressman Toby Moffett review some of the likely policy options available to the Obama administration and Congress to prevent or limit inversions and offer suggestions to companies that are involved in, or are considering, such corporate inversions.