tax

Latham & Watkins Discusses U.S. Inversion Regulations After New Tax Law

By Nicholas J. DeNovio, Laurence J. Stein, Sean M. FitzGerald and Jared W. Grimley August 2, 2018 by renholding

On July 11, 2018, the US Department of the Treasury (Treasury) and the Internal Revenue Service (the IRS) issued final regulations (the Regulations) continuing efforts aimed at curbing cross-border corporate expatriation transactions — commonly referred to as inversions — and …

Paul Weiss Discusses Issues With Private Equity Transactions After New Tax Law

By Matt Abbott, Angelo Bonvino, Marco Masotti, Lindsay Parks, Scott Sontag and Taurie Zeitzer July 11, 2018 by renholding

On December 22, 2017, President Trump signed Public Law No. 115-97, formerly known as the “Tax Cuts and Jobs Act” (the “Act”), into law. The Act makes a number of major changes to the U.S. federal income taxation of both …

SEC’s Jackson Calls for Curbing Executives’ Ability to Cash Out on Buybacks

By Robert J. Jackson, Jr. June 12, 2018 by renholding

Thank you so much, Neera [Tanden], for that very kind introduction. I’ve long admired all that you and everyone here at the Center for American Progress do to promote a progressive economic agenda. And I share your commitment to making

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Cleary Discusses Settlement Payments Under the New Tax Law

By Diane Wollman, Rebecca Reeb and Katie Sheridan March 5, 2018 by renholding

Investigations into potential violations of U.S. and non-U.S. securities laws are often resolved by a settlement requiring the business to make one or more large settlement payments.  We have seen settlements paid to the DOJ, the SEC, other U.S. and …

Corporate Governance, Tax Avoidance, and Finance Constraints

By Onur Bayar, Fariz Huseynov and Sabuhi H. Sardarli January 11, 2018 by renholding

In response to greater financial constraints and more costly external financing, firms may avoid corporate taxes to generate funds for investment. In that sense, outside investors may recognize tax management as a value-increasing activity, especially for a financially constrained firm. …

Wachtell Offers 2018 Checklist for Cross-Border M&A Involving U.S. Targets

By Adam O. Emmerich and Robin Panovka January 10, 2018 by renholding

Global M&A accelerated in the fourth quarter of 2017, driven in part by tech expansion and strong economies in several key markets, and there are many signals pointing to a continued strong pace of transactions, including in the U.S. Overall …

Gibson Dunn Discusses SEC Guidance on How the New Tax Law Affects Disclosure and Accounting

By Ronald O. Mueller, Elizabeth Ising, Michael Scanlon, Brian Lane and Andrew Fabens January 8, 2018 by renholding

On December 22, 2017, the Securities and Exchange Commission’s Office of the Chief Accountant and Division of Corporation Finance (“Staff”) issued important guidance that provides significant relief and helpful answers on some of the accounting and disclosure issues raised by …

Why Corporate Tax Residence Is a Myth

By David Elkins December 11, 2017 by renholding

Corporate inversions have captured the imagination of the public and the popular press as well as that of the academic community. The idea is that a little paperwork can convert a U.S. corporation (which pays tax on its worldwide income) …

How Corporate Tax Systems Affect Cross-Border M&A Prices

By Dominik von Hagen and Fabian Nicolas Pönnighaus December 8, 2017 by renholding

There were more than $1 trillion worth of cross-border mergers and acquisitions in 2016, according to the United Nations Conference on Trade and Development, making them a prominent form of foreign direct investment and an important way for multinational entities …

U.S. Tax Reform Requires an Understanding of Why Corporations Invert

By Michael Knoll December 6, 2017 by renholding

For more than a century, the United States has had a worldwide tax system whereby U.S. taxpayers were subject to federal taxation on all of their income “from whatever source derived.”  In what would be a sharp break from longstanding …

Latham & Watkins Discusses How U.S. House Tax Plan Will Affect Renewable Energy

By Eli M. Katz, Julie M. Marion and Eric Kamerman November 14, 2017 by charlesbluesky

House Republicans unveiled a sweeping tax reform bill on Thursday, November 2 that proposed to lower the corporate tax rate and allow companies to immediately deduct the full cost of business assets in the year companies build or acquire them.…

Cleary Gottlieb Discusses How Tax Plan Would Affect Executive Compensation

By Michael Albano, Arthur Kohn, Mary Alcock, Caroline Hayday and Kathleen Emberger November 7, 2017 by renholding

The recently proposed Tax Cuts and Jobs Act (the “Act”) includes executive compensation tax reforms that, if enacted, would have significant implications for the way in which companies structure their compensation programs.

The Act was introduced in the U.S. House …

Simpson Thacher Discusses Trump and GOP Lawmakers’ Tax Overhaul Plan

By Robert Holo October 18, 2017 by Carly Goeman

On September 27, President Trump, the House Committee on Ways and Means and the Senate Committee on Finance released their framework for tax reform (the “framework”), which represents the most detailed proposal for changes to the tax code issued during …

Targeting Corporate Inversions: Are We Doing the Right Thing?

By Doron Narotzki June 21, 2017 by renholding

Congress, the U.S. Department of the Treasury (“Treasury”), and countless legislators have criticized corporate inversions — mergers designed to help American companies lower their tax bills by moving overseas — since McDermott International completed the first one in 1982. Nearly …

A Tax on Aggressive Tax Planning

By Jan Vleggeert and Henk Vording May 16, 2017 by renholding

Tax planning by multinational enterprises (MNEs) is estimated to generate a worldwide loss of corporate tax revenues of between $100 billion and $240 billion. U.S.-based MNEs alone are believed to retain a total of $2 trillion in earnings outside the …

The Law and Economics of Shadow Banking

By Hossein Nabilou and Alessio M. Pacces March 31, 2017 by renholding

In our recent paper, we discuss the economic case for regulating shadow banking and ask three questions. First, what is shadow banking? Second, why should it be regulated? And third, what’s an efficient way to regulate it? We focus on …

Shearman & Sterling Offers a Primer on House Blueprint for Tax Reform

By Laurence E. Crouch, Matthew P. Wochok and Michael B. Shulman March 21, 2017 by renholding

The election of Donald Trump in November has substantially increased the likelihood of major tax reform in the near future. While it is uncertain what shape such reform will take, there has been renewed interest in the so-called “Blueprint” for …

Do Creditors Actively Influence Corporate Tax Planning?

By Chi Wan and Yijia Zhao March 2, 2017 by renholding

In our recent paper, we provide strong empirical evidence that banks play an active role in shaping borrowers’ tax planning. Our evidence is drawn from a comprehensive analysis of the impact of debt covenant violations on corporate tax avoidance.

Covenants …

K&L Gates Discusses the Border Adjustment Tax

By Betsy-Ann Howe, Mary Burke Baker and Rebecca Bolton February 21, 2017 by Jeff Himelson

The House Republicans have proposed sweeping changes to the U.S. tax system, specifically that income from the export of goods, services and intangibles will not be subject to federal income tax, and that the cost of such imports into the …

Sullivan & Cromwell Discusses Corporate Inversion Transactions

By Ronald E. Creamer, Jr., Davis J. Wang, Jameson S. Lloyd and Andrew B. Motten February 7, 2017 by renholding

On January 13, 2017, the Internal Revenue Service (the “IRS”) and the Treasury Department (the “Treasury”) published new final and temporary regulations (the “New Regulations”) and issued a notice of proposed rulemaking by cross-reference to the temporary regulations that address …