Steven Davidoff Solomon

Corporate inversion: an expensive way to save on taxes

Steven Davidoff Solomon interviewed by Marketplace, July 15, 2014

“What’s going on now is a feeding frenzy,” says University of California, Berkeley law professor Steven Davidoff Solomon. “Every investment banker now has a slide deck that they’re taking to any possible company and saying, ‘you have to do a corporate inversion now, because if you don’t, your competitors will.’”

With merger, tobacco takes on technology

Steven Davidoff Solomon writes for The New York Times, July 11, 2014

Because of declining sales in the still highly profitable American cigarette market, a move toward consolidation was perhaps inevitable. Reynolds has already spun off its international operations. So it is no surprise that the companies, left with few expansion opportunities, are seeking to join forces to lift profits through cost savings.

In deal to cut corporate taxes, shareholders pay the price

Steven Davidoff Solomon writes for The New York Times, July 8, 2014

The sand in the eye for the shareholders is that Congress tried to halt the tide of inversions about a decade ago. Lawmakers amended the tax code to provide that executives of companies like Medtronic that went abroad would have to pay a tax on their stock compensation. The tax is at the same capital gains tax that Medtronic’s shareholders will have to pay in connection with the transaction.