Wednesday, September 24, 2014
The Inversion on Corporate Inversions
To clarify, corporations reincorporate to a tax-friendlier country while still keeping their U.S. operations intact. Essentially they get the best of both worlds… or both countries in this case. Some recent examples are Burger King acquiring Tim Horton to move to Canada or Abbvie acquiring Shire to move to Ireland. Corporate inversions are technically legal but have received a large amount of criticism. President Obama has suggested that corporate inversions are unpatriotic, given they still participate in the U.S. markets but are not subject to the taxing regulations.
Companies used to simply park their profits overseas, where U.S. tax authorities could not reach until it is brought home. The problem is that the companies could not make much use of the money while it is overseas.
To read full article, click here.
Source: Michael Hennel (www.linkedin.com)
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