Abstract

http://ssrn.com/abstract=655447
 
 

Citations (1)



 


 



Practical and Policy Considerations in Corporate Inversion Transactions


Craig M. Boise


C|M|LAW

James C. Koenig


Thompson Hine LLP


Corporate Business Taxation Monthly, Vol. 3, No. 12, pp. 3-20, September 2002

Abstract:     
U.S. businesses typically own both U.S. subsidiaries and foreign subsidiaries. These U.S.-based businesses are tempted to consider reversing this structure, creating instead a structure in which a foreign company is the ultimate owner. The foreign-based business would then own both U.S. subsidiaries and foreign subsidiaries. This reversal process is termed an inversion transaction.

These U.S.-based businesses might seek to forestall the determents of having a U.S.-based business, including transfer pricing audits, foreign tax credits limitations, and a partial disallowance of interest expenses. Craig M. Boise and James C. Koenig examine corporate inversion transactions, focusing on practical and policy considerations. They examine the specifics of these tax determents and U.S. legislative developments.

Mr. Boise and Mr. Koenig begin with a discussion of the U.S. worldwide tax regime and describe inversion transactions. In this regard, Mr. Boise and Mr. Koenig discuss the manner in which inversion transactions work, including the earnings strip option and the treaty benefit option. They then examine the Treasury's view of inversion transactions, including problem areas such as earnings stripping and subpart F. Mr. Boise and Mr. Koenig discuss the proposed anti-inversion legislation and inversion transactions.

Number of Pages in PDF File: 20

Keywords: Taxation, foreign subsidiaries, foreign-based business, corporate inversion transactions, inversion, expatriation, Bermuda, Cayman Islands, asset transaction, cross-border merger

JEL Classification: K22, K34

Accepted Paper Series





Download This Paper

Date posted: February 1, 2005  

Suggested Citation

Boise, Craig M. and Koenig, James C., Practical and Policy Considerations in Corporate Inversion Transactions. Corporate Business Taxation Monthly, Vol. 3, No. 12, pp. 3-20, September 2002. Available at SSRN: http://ssrn.com/abstract=655447

Contact Information

Craig M. Boise (Contact Author)
C|M|LAW
2121 Euclid Avenue, LB 138
Cleveland, OH 44115-2214
United States
216-687-2300 (Phone)

James C. Koenig
Thompson Hine LLP ( email )
3900 Key Center
127 Public Square
Cleveland, OH 44114-1291
United States
216-566-5503 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 1,820
Downloads: 239
Download Rank: 74,355
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.516 seconds