April 27, 2016
The latest round of anti-inversion regulations released in April by the U.S. Treasury Department is being received by Canadian experts, according to a Lexpert piece, as a measure primarily aimed at deterring specific large-scale mergers rather than a blanket obstruction to current U.S.-Canada M&A activity. Torys partner and highly ranked life sciences lawyer, Cheryl Reicin, provided insight on the new regulations in Lexpert. Below is an excerpt of the article.
Cheryl Reicin of Torys LLP, with offices in Toronto and New York, says the new regulations, including ones that limit the benefits of intra-company debt, are merely a stopgap and do not address the core issues. “It’s like plugging holes in a dyke, because the water will continue to rush until the US reduces tax rates,” she says. “Some of the larger mergers may not happen, and the ones that do happen may not get the same level of benefit, but inversion transactions will keep happening.”
To read the full article, click here.