In the Media

Yesterday's Inversion Buyers Are Next Targets: Real M&A

In recent weeks, the debate over corporate inversions has heated up as the Obama administration has alluded to an effort to deter the strategy. While the tax code gives the Treasury broad powers, it does not have the capacity to act on its own to curb inversions and bypass Congress.

"The Treasury probably lacks the power to do anything as substantive as what Congress could to prevent these deals," said William Dantzler, a tax partner at White & Case LLP. "The rule that allows an inversion is in the statute plain as day. Only Congress could change that."

Given the Obama administration's focus to limit the benefits of inversions, Dantzler asserts, "U.S. companies with an inversion deal in mind that makes sense still should act fast. They would be well-advised to accomplish it as quickly as possible."