Tax Court Ruling Signals Cross-Border Loan Scrutiny

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Tax Court Ruling Signals Cross-Border Loan Scrutiny

March 11, 2026

United States
United States
United States
Law360

In this article published by Law360, Eversheds Sutherland Partners Xenia Garofalo, Karl Zeswitz and Brian Tschosik analyze the Tax Court’s decision in Aventis Inc. v. Commissioner, which held that the securitization arrangement at issue failed to qualify as a FASIT and instead required a traditional debt equity analysis.

The Aventis opinion, coupled with other recent events, may portend a broader scrutiny of foreign investors in US debt. The opinion has elements found in the recent final and proposed section 892 regulations as well as in the YA Global case, which is on appeal.

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer.

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Key contacts

xeniagarofalo@eversheds-sutherland.com

Xenia J. Garofalo

Partner

Washington, DC, United States

briantschosik@eversheds-sutherland.com

Brian Tschosik

Partner

Washington, DC, United States

karlzeswitz@eversheds-sutherland2

H. Karl Zeswitz

Partner

Washington, DC, United States

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