Arlington, Va. (March 17, 2020) — Bloomberg Tax & Accounting today announced the availability of Corporate Inversions, a new Tax Management Portfolio that describes the federal income tax consequences that occur when a U.S. corporation or U.S. partnership converts into, merges with, or becomes the subsidiary of a foreign corporation through an exchange of stock. The Portfolio, which was authored by John L. Harrington of Dentons USA LLP, is currently available on the Bloomberg Tax platform for subscribers.
The new Portfolio focuses on an aspect of the Internal Revenue Code that was added by Congress as part of the American Jobs Creation Act of 2004. It imposes negative tax consequences on an inverted company, by reducing, or in some cases, eliminating the tax benefits derived from a corporate inversion. The Portfolio provides detailed guidance for companies to determine whether they meet the three requirements to be subject to the negative tax consequences of an inverted corporation. Companies that have foreign operations or plan to do business with foreign entities will find this Portfolio especially valuable.
“As multinational U.S. companies continue to focus on their tax planning strategies on a global basis, more practitioners will be presented with questions about the complexity of global tax structuring and planning,” said Benjamin Jung, Director, Federal Tax, Bloomberg Tax & Accounting. “The expertise John Harrington provides in this Tax Management Portfolio will assist tax professionals in understanding and mitigating the negative tax consequences of a corporate inversion.”
For more information on Bloomberg Tax & Accounting’s new Management Portfolio on Corporate Inversions, visit http://onb-tax.com/IoVy50yNVHz.
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