In the Headlines
April 28, 2021

Inversion Landscape May Remain Static Under Biden Tax Plan


Public Policy and Tax Law Partner Joshua Odintz spoke with Law360 about President Joe Biden's proposals to block U.S. corporations from moving their tax residences offshore. The tax plan would add to existing anti-inversion measures, potentially keeping the scales tipped against an exodus even as the administration aims to raise taxes on companies' foreign income. According to Mr. Odintz, it's unclear whether the plan would give companies new incentives to invert, in part because the U.S. is currently negotiating uniform standards at the Organization for Economic Cooperation and Development. These new rules would include a global minimum tax.

If the U.S. is part of any agreement on new rules, then in theory, tax would be a neutral factor when companies are deciding where to locate after a merger, he said. But if the U.S. is an outlier, two companies that are merging may see it as "more attractive for the combined entity to not be located in the United States."

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