3 Hous. Bus. & Tax L.J. 1 (2003)

handle is hein.journals/houbtalj3 and id is 1 raw text is: COPYRIGHT  2003 HOUSTON BUSINESS AND TAX LAW JOURNAL. ALL RIGHTS RESERVED.

CORPORATE INVERSIONS: WILL THE REPO
ACT KEEP CORPORATIONS FROM MOVING TO
BERMUDA?
Beckett G. Cantley*
TABLE OF CONTENTS
I.    IN TRO D U CTIO N   ....................................................................... 2
II.   TAX CONSEQUENCES OF A STOCK CORPORATE
IN V ERSIO N   .......................................................................... 3
A. What is a Stock Corporate Inversion? ......................... 3
B. Tax Consequences of Undertaking a Stock Inversion
T ransaction  ..................................................................  4
C. Tax Consequences After Stock Inversion
T ransaction  ..................................................................   6
1. Pre-Inversion Background ..................................... 6
2. Post-Inversion Subsidiary of a U.S. Corporation ...... 9
3. Post-Inversion Foreign Parent Corporation ...... 12
4. Post-Inversion U.S. Shareholders ....................... 13
5. Post-Inversion Foreign Shareholders .................. 14
III.  THE DRAFT REPO ACT ................................................... 14
A. Proposed Law Changes .............................................. 14
1. Proposed Change to Pure Inversions ................... 14
2. Proposed Change to Non-Pure Inversions ........... 15
IV.   WILL THE DRAFT REPO ACT DETER CORPORATIONS
FROM TRANSACTIONS LIKE INVERSIONS? ........................ 21
A .  D eterrence  .................................................................   21
B. Not Really Solving the Problem ............................... 22
V.    THE SEPTEMBER 11, ENRON, AND BUDGET FACTORS .......... 25
V I.  CONCLUSION    ....................................................................  27
Beckett G. Cantley (University of California, Berkeley, B.A., 1989; Southwestern
University School of Law, J.D., cum laude, 1995; and University of Florida, College of
Law, L.L.M. in taxation, 1997) is a Professor of Law at St. Thomas University School of
Law.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 2,700 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline with pricing starting as low as $29.95

Access to this content requires a subscription. Please visit the following page to request a quote or trial:

Already a HeinOnline Subscriber?