Banks Are Reaping the Benefits From Inversions
Banks Are Reaping the Benefits From Inversions
Up until now, most of the attention regarding tax inversions has been put on the companies that have been choosing to make these deals. After all, it’s the companies that are saving a bunch of money on their taxes and supposedly cheating the U.S. Treasury out of more money. However, it’s not just the companies themselves that are benefitting from these deals. The banks that broker them are reaping the benefits as well.
Banks Are Wheeling and Dealing
Despite claims by many politicians in the nation’s capitol that tax inversions are un-American and that they are robbing the country of important tax dollars, there are many banks that are willing to step up and help make these deals happen. Why, you ask, because the banks can make a lot of money doing these deals. Plus, if one bank says no, it’s well aware that another bank will say yes and therefore reap the benefits.
Good Business Sense
Even though many lawmakers would have you believe that inversions are wrong, the fact is they are not illegal and they are not immoral or un-American. They are however, in many cases, just simply good business. So which banks are doing these deals and which banks are making the most money from them?
Lots to Be Made
There have been more than 30 of these deals since 2011. Leading the way is Goldman Sachs, which has reportedly completed 10 tax inversions for total revenue of just over $202 million. Coming in a close second on the list is JP Morgan Chase, which has done seven of such deals and earned revenue of nearly $185 million. Morgan Stanley, Citigroup and Greenhill & Company have also assisted with tax inversions making between roughly $97 million and $55 million respectively.
The Debate Rages on
The debate over tax inversions will no doubt continue as long as lawmakers are unable to make significant changes to the country’s corporate tax code. That’s because without meaningful changes companies will continue to consider these deals and it appears that they will continue to make them. Although lawmakers want to put a stop to inversions, it seems that the real solution might lay in tax reform. The bottom line, unless Congress is willing to make things easier for companies to do business and help them keep more of their hard-earned money, tax inversions are likely to continue.
Time Will Tell
Only time will tell the true affect of these kinds of deals on the country and its overall financial well-being. However, one thing is for certain, the financial institutes that help companies do these deals will continue to reap the rewards.
GROCO Believes in Sound Tax Planning
At GROCO, we believe that saving as much money on your taxes as legally possible is both fair and smart. We have a wealth of knowledge and experience in helping our clients plan for and save on their taxes. If you would like to learn more about what we do and how we can help you, then contact us online or call us at 1-877-CPA-2006.
—————————————————————————————————————————————————————————————————————
We hope you found this article about “Banks Are Reaping the Benefits From Inversions” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Which Tax Breaks Will Be Restored for 2014?
It seems like every year at this time the conversations start to creep up in the media regarding which tax breaks will be renewed and which breaks will get the permanent axe. This year is no different as Congress already let more than 50 such tax breaks expire at the end of 2013. Now the…
Helpful Deduction Tips for Collectors
Are you a collector? Have you ever wondered if you could donate the items you collect to a charity auction for tax break purposes? If you are considering this scenario, there are some things you should know. The first thing you need to make sure of is that the charity you are considering is actually…
Ask Yourself These Key Questions When Planning Your Estate
Almost no one can choose when he or she will die, but everyone can choose how his or her assets will be handled when that time comes. It’s really just a matter of having a current and effective estate plan in place before you go. Estate planning is a wide subject with many aspects; and…
Another Senator Says It’s Time to Go After the Wealthy
Another Senator Says It’s Time to Go After the Wealthy We all know that death and taxes are two certainties in life. However it seems that we should probably add the argument that the wealthy should pay more taxes to that list of certainties. According to reports, Senator Bernie Sanders of Vermont recently shared his…