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Jeff Paravano Predicts Debt-Equity Tax Rules Under Review by Treasury

News / May 4, 2017

Partner Jeff Paravano is quoted in an article published April 24, 2017, by Bloomberg BNA. The article, “Trump Order Sparks Debate over Inversions, Debt-Equity Rules,” discusses the Trump administration’s order that the Treasury Department review tax regulations since 2016 and make recommendations about which rules should be repealed or revised.

Published under tax code Section 385, one such rule is aimed at stopping foreign multinationals from moving cash out of the U.S. via inbound loans to U.S. subsidiaries by treating that debt as equity. Paravano told Bloomberg that there may be a push in the administration “to manage that sooner rather than later.” He said, “I would expect that to be at the top of the list.”

Read the article.