Abstract

https://ssrn.com/abstract=655447
 
 

Citations (1)



 


 



Practical and Policy Considerations in Corporate Inversion Transactions


Craig M. Boise


Independent

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


Open PDF in Browser 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: https://ssrn.com/abstract=655447

Contact Information

Craig M. Boise (Contact Author)
Independent
No Address Available
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: 2,127
Downloads: 328
Download Rank: 71,328
Citations:  1