Overview
The Hill quoted Steptoe Chair Phil West in an April 10 article titled “Obama’s Legacy-Defining Week with Business.” The article discusses action taken by the US Treasury to limit so-called corporate inversions, and the impact it will have on the business community. Among the action are proposed rules that take aim at one of the major tax benefits of inversions called “earnings stripping.” According to the article, the guidance on “earnings stripping” is likely to have a broad impact and will likely affect companies other than just those involved in inversions.
Mr. West says, “I think this set of guidance is the most far-reaching we’ve seen and will have spillover effects on noninversion transactions.”
The full article can be read at The Hill.
