Jeffrey M. Trinklein & David A. Siffert (both of Gibson Dunn, New York) respond to Reuven S. Avi-Yonah (Michigan), The Redemption Puzzle, 128 Tax Notes 853 (Aug. 23, 2010), in this week's Tax Notes (128 Tax Notes 1082 (Sept. 6, 2010)):

In his article, Prof. Avi-Yonah suggests that the apparent increase in stock redemptions starting in 2003 is due to foreign shareholders benefiting from §§ 302 and 304. He then proposes excluding foreign shareholders from the scope of §§ 302 and 304. This letter responds to certain of the arguments presented by Prof. Avi-Yonah and suggests that his proposed remedy to the perceived issues is inappropriate and, if adopted, would create its own issues.

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