By Edward Tanenbaum
Alston & Bird LLP, New York, NY
It came as no surprise when Treasury released its final regulations under Reg. §1.7874-31 confirming its approach taken in earlier temporary regulations dealing with the definition of "substantial business activities" in the context of inversions. Practitioners and taxpayers had hoped for a relaxation of the rules but, alas, it was not forthcoming.
Recall that an inversion under §7874 applies if, pursuant to a plan or series of related transactions: