Douglas Chiu


Corporate Law, Federal Law, International Law


Corporate inversions are the act of American corporations legally redomiciling to a foreign jurisdiction to lessen their corporate tax burden. While the practice has waxed and waned over the past decades, inversions were on the upswing in 2014, with several of America’s leading corporations at various stages of inverting. In 2014, the federal government responded to the increased corporate inversions with two main renewed legal thrusts originating from the legislative and the executive branches. In Congress, there are now four main bills at the committee stage that propose to restrict the existing statutory loopholes that allow corporate inversions. Concurrently, the United States Department of the Treasury has issued guidelines to reduce the taxation benefits of corporate inversions. In light of these actions, this note will discuss the current legal climate of corporate inversions and the potential impact that the proposed legislation and the administrative interpretations may have on corporate inversions. Ultimately, this note will argue that absent actual reforms to the underlying push and pull factors in the American tax law, corporate inversions will continue unabated, and the legislative and executive efforts may be inadequate to end altogether the practice of corporate inversions.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.