What have been the attitudes and policies (including recent ones) of the US government towards corporate inversions?
A corporate inversion occurs when a company which is primarily based in US relocate its operations overseas due to tax burden. Companies who receive a large portion of the income from foreign sources employ corporate inversion strategy since income is typically taxed both locally and abroad. The destination company will have a lower tax rate and less stringent corporate rules.
Although This practice is legal, it has come under fire as a loophole that artificially lower corporate taxes and keeps US dollars overseas.
Trump administration has scaled back all the rules that were meant to stop corporate inversion that was set by the Obama Administration.
The taxes that were reduced are back to normal. The previous rules discouraged comapies from shifting profits, headquarter designations or actual economic activity overseas to minimize the tax bills.
Get Answers For Free
Most questions answered within 1 hours.