Sam Lichtman in the New York Times Dealbook: New Rules Make Inversions Less Lucrative, Experts Say


Inversions, the hottest deal structure on Wall Street, appear to be safe for now. But they just became less profitable and more difficult to pull off.

Late Monday, the Treasury Department announced a series of measures intended to crack down on the deals, in which United States companies reincorporate abroad to lower their taxes.

But the consensus among corporate advisers was that while the new rules might make some deals less lucrative, they would not halt the rush of companies seeking tax relief abroad.

“This doesn’t solve the problem or prevent inversions from occurring,” said Sam Lichtman, a partner in the tax practice group at the law firm Haynes and Boone, LLP. “The announced inversions will still go ahead.”

Excerpted from the New York Times Dealbook, September 24, 2014. To view full article, click here.


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