CRS Report on Tax Issues Regarding Corporate Expatriation, Inversions and Mergers

The Congressional Research Service (CRS) recently published a new report:

Corporate Expatriation, Inversions, and Mergers: Tax Issues (R43568 – May 27, 2014)
Donald J. Marples, Specialist in Public Finance
&
Jane G. Gravelle, Senior Specialist in Economic Policy

Here is the table of contents:

Contents
Introduction …………………………………………………………………………………………………………… 1
U.S. International Tax System…………………………………………………………………………………… 2
Anatomy of an Inversion………………………………………………………………………………………….. 2
Substantial Business Presence ……………………………………………………………………………….. 2
U.S. Corporation Acquired by a Larger Foreign Corporation ………………………………………. 3
A Smaller Foreign Corporation Acquired by a U.S. Corporation ………………………………….. 3
Response to Initial Inversions: The American Jobs Creation Act ………………………………….. 4
Post-2004 Inversions and Treasury Regulations ………………………………………………………… 5
Policy Options ……………………………………………………………………………………………………….. 7
U.S. Corporate Tax Reform …………………………………………………………………………………….. 8
Lower the Corporate Tax Rate  ……………………………………………………………………………….. 8
Adopt a Territorial Tax System   ………………………………………………………………………………. 9
Tax Reform Proposals  …………………………………………………………………………………………… 9
Targeted Approaches ………………………………………………………………………………………….. 10
Concluding Thoughts …………………………………………………………………………………………… 11

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