U.S. Tax Reform: Strategies for Executing Transactions in the Face of Uncertainty

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2017-03-14

Posted by Nicholas J. DeNovio, Latham & Watkins LLP, on Sunday, March 12, 2017
Editor's Note: Nicholas J. DeNovio is a partner at Latham & Watkins LLP. This post is based on a Latham publication by Mr. DeNovio, Jiyeon Lee-LimLaurence J. Stein, and Kirt Switzer.

Tax reform plans would fundamentally alter the landscape for key business decisions, impacting a business’ legal, finance, corporate development and other divisions, as well as tax groups.

Key Points:

  • Tax reform would change taxation, capital and operating structures.
  • The House Ways & Means Committee and the Trump Administration have each released tax reform proposals addressing five key themes: lowering the corporate tax rate, interest and other deductions, a territorial system, a one-time tax on accumulated overseas earnings and a destination-based cash flow tax.
  • Forward-looking strategies can help parties keep transactions on track.