Pumping up or Sliming down are Inversion Tricks of the Past

Recent changes to rules regarding corporate inversions from the US Treasury Department and IRS make it harder for corporations to disguise it's true size. Jeffrey S. Freeman, J.D., LL.M Old tricks aren't hard to see through - throwing in a few extra pushups right before you pick up your date to inflate the appearance of your biceps is harmless. Same goes for putting your body through a crash diet to drop those last five pounds before your big event. Both aim to disguise your true size and the US Treasury department is saying that corporations can no longer use these tricks. Pumping Up with Passive Assets In order to meet the required new foreign parent's size to meet the required 80% rule corporations would inflate the new parent's size through "cash boxes". "Cash boxes" are passive assets such as cash or marketable securities that are not actually used to support daily business functions. New rules state that stock of the foreign parent that is attributable to passive assets would be disregarded as the company size is evaluated for the 80% requirement. This rule would apply is at least 50% of the corporation's assets are passive, since they are using their [...]