How to Enact New Tax Laws Without Involving Congress: Analyzing the Proposed Section 385 Regulations

Scott Semer has written "How to Enact New Tax Laws Without Involving Congress: Analyzing the Proposed Section 385 Regulations" for Bloomberg BNA's Daily Tax Report. Below is the Report's abstract describing Scott's article.

Scott Semer of Torys critiques the IRS's proposed rules (REG-108060-15) under tax code Section 385, which in part provide that instruments issued in certain transactions won't be treated as debt for tax purposes—even if they clearly establish a debtor-creditor relationship. Those rules "have nothing whatsoever to do with distinguishing debt versus equity," Semer writes. "Instead, they are a regulatory attempt to impose new earnings-stripping rules."

Download a PDF of the article here.