August 18, 2014
In recent years, a number of U.S.-based corporations with significant international holdings have shifted their headquarters overseas in an attempt to lower their tax bills. The process, known as corporate or tax “inversion,” is designed to avoid America’s high corporate tax burden. At 35 percent, the U.S. nominal corporate tax rate is highest among member nations in the Organization for Economic Cooperation and Development (OECD)…[Harvard Law School Professor Mihir] Desai spoke with the Gazette via email about the factors driving the practice of tax inversion, and also provided links to research around the topic.
August 15, 2014
Harvard Law School Professor Mihir Desai recently spoke with the Harvard Gazette about the factors driving the practice of tax inversion, a maneuver by which U.S.-based corporations with significant international holdings shift their headquarters overseas in an attempt to lower their tax bills.
July 29, 2014
The chorus of voices on Capitol Hill calling for an end to corporate inversions grew louder on Tuesday as the Senate Finance Committee held a hearing on the issue of American companies reincorporating abroad, and legislators proposed new punitive measures against inverted companies…But while agreeing that the current system is broken, Mihir A. Desai, a professor of law at Harvard University, said punitive legislation could be counterproductive. “Legislation that is narrowly focused on preventing inversions or specific transactions runs the risk of being counterproductive,” he said. ”For example, rules that increase the required size of a foreign target to ensure the tax benefits of an inversion can deter these transactions but can also lead to more substantive transactions.”
July 28, 2014
The rush is on for big U.S. companies to lower their tax bills. They do it by merging with foreign companies in countries with lower rates and officially moving their home base. The strategy is called "inversion," and it's legal. But is it un-patriotic? …The trend of U.S. companies moving abroad is more a testament to, among other things, "the importance of non-U.S. markets for U.S. firms," said Mihir Desai, a Harvard professor of finance and law. "Rather than questioning the loyalties of executives it is critical to understand these underlying ... forces."
July 23, 2014
On July 22, Harvard Law School Professor Mihir A. Desai, a scholar of tax policy, international finance and corporate finance, participated in a Senate Finance Committee hearing titled “The U.S. Tax Code: Love It, Leave It, or Reform It.”
Mihir A. Desai, who currently serves as the Mizuho Financial Group Professor of Finance, the Senior Associate Dean for Planning and University Affairs, and the Chair of Doctoral Programs at Harvard Business School, has accepted a joint appointment to the faculty of Harvard Law School as a tenured Professor of Law.