UPDATE 1-Obama could curb corporate 'inversions' on his own -ex-U.S. official
* By invoking 1969 law, Obama could bypass Congress -former Treasury official
* Policy analyst says president unlikely to risk "overreach" accusation
* Treasury Secretary Lew renews call for urgent action by U.S. Congress (Adds analyst comment, background)
By Kevin Drawbaugh
WASHINGTON, July 28 (Reuters) - President Barack Obama could act without congressional approval to limit a key incentive for U.S. corporations to move their tax domiciles abroad in so-called "inversion" deals, a former senior U.S. Treasury Department official said on Monday.
By invoking a 1969 tax law, Obama could bypass congressional gridlock and restrict foreign tax-domiciled U.S companies from using inter-company loans and interest deductions to cut their U.S. tax bills, said Stephen Shay, former deputy assistant Treasury secretary for international tax affairs in the Obama administration.
In an article published on Monday in Tax Notes, a tax professionals' journal, Shay said the federal government needs to move quickly to respond to a surge in inversion deals.
"People should not dawdle," said Shay, now a professor at Harvard Law School, in an interview on Friday.
If the administration takes the steps he discusses, Shay said, some of the many inversion deals said to be in the works might be halted. The regulatory power conferred by the tax code section he has in mind, known as Section 385, would be a "slam dunk" for the Treasury Department, he said. Continuación...