A World Turned Upside Down: Reflections on the 'New Wave' Inversions and Notice 2014-52

6 Pages Posted: 29 Sep 2014 Last revised: 17 Oct 2014

Date Written: September 28, 2014

Abstract

On September 22, 2014, the Treasury issued Notice 2014-52 (the “Notice”). The Notice was intended to fulfill President Obama’s pledge to use executive actions to the extent possible to block the new wave of corporate inversions. To what extent can the Notice succeed?

This article will argue that while the Notice is a useful first step, it is unlikely to stem the tide of inversion transactions. To do that, legislative action is needed in the short term. In the longer term, the only solution to inversions is coordination with other OECD countries in the context of the Base Erosion and Profit Shifting (BEPS) endeavor to limit double non-taxation.

Keywords: inversions, BEPS

JEL Classification: H26

Suggested Citation

Avi-Yonah, Reuven S., A World Turned Upside Down: Reflections on the 'New Wave' Inversions and Notice 2014-52 (September 28, 2014). U of Michigan Public Law Research Paper No. 421. Available at SSRN: https://ssrn.com/abstract=2502513 or http://dx.doi.org/10.2139/ssrn.2502513

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

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