Venable partner Friedemann Thomma was quoted in an August 1, 2016 Bloomberg BNA article on potential legal challenges to the Treasury Department's new earnings-stripping rules. The new rules are intended to prevent multinational companies from shifting income out of the United States to foreign subsidiaries via loans. If the rules are finalized in their current form, they are expected to trigger multiple legal challenges.
"We all know we can make that argument," Thomma said referring to possible challenges of Treasury's authority to issue the rules. "But it's a tough one." He suggested that the best argument against the rules is to say, "[they] really harm the day-to-day activities of a company. I think that's the way a successful challenge is going to be made."