United States: M&A Update: Treasury Announces New Anti-Inversion Rules
On September 22, 2014, the Treasury Department announced its intent to issue new regulations that will reduce the tax benefits available after an inversion and may make it more difficult for some U.S. companies to invert (the “Notice”). The Notice does not require congressional action and applies immediately to all inversions completed after September 21, 2014.
Overview
1. The Notice prevents inverted companies from accessing their foreign subsidiaries’ earnings while deferring U.S. tax through “hopscotch” loans.
U.S. multinationals […]