Don't Expect Tax Inversion Fever to Break Anytime Soon

The stream of companies undergoing inversions will continue until the U.S. moves to territorial taxation coupled with a lower U.S. corporate tax rate, said Tim Larson, Partner-in-Charge of Tax & Business Services at Marcum. Larson said he does not expect Congress to take such a large step anytime soon so companies, especially in the pharmaceutical sector, will continue to try and redomecile abroad. Larson said tax inversion is not a new strategy for companies seeking a competitive advantage because it was prevalent in the energy sector 20-30 years ago. Finally, Larson said he expects technology companies to follow the path of pharma firms because they have fewer tangible assets abroad, but lots of cash.