News

Jeff Paravano, Paul Schmidt Assess Potential Impact of a Territorial Tax System

News / January 3, 2017

Partners Jeff Paravano and Paul Schmidt are quoted in an article published by Bloomberg BNA on Jan. 3, 2017. In the article, “Companies Slow Inversions, Speed Planning before Tax Reform,” Paravano and Schmidt note that the prospect of a territorial tax system as outlined by the House Republicans has multinational companies considering what such a tax overhaul would mean. 

Paravano told Bloomberg that if foreign income is no longer subject to taxes, “All of the tax pressure associated with inversions would disappear.” However, there could be tradeoffs that would affect the bottom line.

“Everything they do, they're considering whether it's worthwhile to do or whether it would be beneficial to wait,” Schmidt says. “That includes cash management transactions, intellectual property transactions, utilizing foreign tax credits and losses—everything.”

Read the article (registration required).