Concerns Raised on Impact of Expatriation Proposal on Multinationals Buying U.S. Firms

Overview


Caroline H. Ngo raised concerns about the impact of the Obama administration’s new proposal to limit the ability of companies to “invert” at a Washington tax forum. Ms. Ngo raised concerns on the intended scope of the new proposal, including the tax treatment of situations in which large foreign multinationals buy small U.S. firms, with a Treasury official saying it is possible certain transactions could fall under proposed new tighter ownership rules but that likely isn’t the government’s intent. The concerns raised by Ms. Ngo and others were subsequently referenced in a letter from Senator Chuck Grassley (R-IA) to Treasury Secretary Jack Lew.