FINANCIAL TIMES: Dissections of a White House plan to curb tax-driven mergers gave way on Tuesday to a realisation that the most significant features of the move were what it left out.
The Obama administration’s move, announced late on Monday, would not put a stop to most mergers known as “inversions”, because it left several of their potential benefits in place, said bankers, lawyers and accountants.
The two most important are the ability of inverters to access future non-US earnings – as opposed to their existing cash piles – free of US tax, and their ability to take generous tax deductions on loans between different parts of their business… (more)
