Prof. Vaaler Comments on Failed Pfizer-Allergan Merger and Inversion

Professor Paul M. Vaaler commented on recent changes in U.S. Treasury rules related to the treatment of merged companies seeking foreign domicile status for federal corporate income tax purposes. Changes announced this week effectively negated attempts by pharmaceutical firm Pfizer to attain Irish domicile through a proposed merger with Ireland-based pharmaceutical firm Allergan. Pfizer announced that it was abandoning the proposed transaction and paying a transaction exit fee of $400 million. The rule changes are part of the Obama Administration's efforts to curb so-called "tax inversions," meant to decrease corporate tax liability. Professor Vaaler's comments were broadcast on WCCO 830AM radio as part of the "Business by Carlson" radio segment on the Dave Lee Morning News Show.