Overview
Caroline H. Ngo raised concerns with government officials about the intended scope of the Obama administration’s new proposal to limit the ability of companies to “invert.” Ms. Ngo pointed out that, under the new proposal, a large foreign multinational could be treated as a domestic corporation if the foreign company acquired substantially all of the assets of a very small U.S. corporation and maintained substantial business activities and control in the U.S. “If you take out the ownership continuity requirements in that scenario, the special rule could apply,” Ms. Ngo pointed out. 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.
