Interim Guidance on Stock Buyback Excise Tax Confirms Broad Application to M&A and Capital Market Transactions
Cooley M&A
JANUARY 19, 2023
The Inflation Reduction Act imposes a 1% excise tax on certain repurchases of stock of publicly traded US corporations (“Covered Corporations”) effected after December 31, 2022 (the “Excise Tax”). [1] The Notice does not extend the netting rule to deSPAC transactions where target shareholders do not receive SPAC stock (e.g.,
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