Our recent article published, The Corporate Inversion: From Obscure Strategy to Hot Trend addresses why many businesses and longstanding American icons have made the move towards corporate inversion, a tax reduction method of re-incorporating a company in another country if a significant portion of the company’s income is derived from foreign sources.
Keep in mind that corporate inversion is not tax evasion. U.S. companies have a duty to their shareholders to preserve corporate assets, and use legal means to save taxes is perfectly legitimate. However, this position has garnered the political attention of both democrats and republicans as of late who are using the media and political pressure to block high profile inversions.
On August 12, 2014, Steve will appear on Al Jazeera America, Inside Story to discuss.
What harm is tax inversion? Tonight at 5 ET/2 PT
Some American corporations like to set-up shop abroad in order to avoid high U.S. tax rates. It’s called tax inversion, and while not a new practice – nor illegal – it’s getting lawmakers concerned. Some call it unpatriotic, while others see a need for tax reform. How does it work? Does it really hurt our country’s bottom line?
Also note that on August 26, 2014, Moskowitz LLP will be presenting a Webinar through West Legal, Tax Inversions: Tax Savings Strategies for Corporations and What Political Calls for Tax Reform Mean. Please join us.