---

Several prominent public corporations have recently embraced a noteworthy (and newsworthy) type of transaction known as a "tax inversion." In a typical inversion, a US multinational corporation (MNC) merges with an operating foreign company. The entity that ultimately emerges from this transactional cocoon is invariably incorporated abroad, yet typically remains listed in domestic securities markets (under the erstwhile US issuer´s name). When structured to satisfy applicable tax requirements, corporate inversions permit domestic MNCs eventually to replace US tax treatment with foreign tax treatment of their extraterritorial earnings - almost always at far lower effective rates (sometimes even zero). Most regulators and politicians have reacted to the inversion invasion with alarm and indignation, no doubt fearing that the trend is but a harbinger of an immense offshore exodus by US multinationals.

---

Burjacovschi, Mircea
Mircea Burjacovschi, BSc in Business Administration and MSc in International Accounting at the School of Management and Economics of Turin. Tech enthusiast specialised in International Business and Finance works with start-ups and CEO of a start-up specialized in the creation of time management solutions for professionals.

---