Tax inversion
CORPORATE MOVE TO A LOWER TAX JURISDICTION
Corporate Inversion; Corporate inversion; Corporate tax inversion; Corporate tax inversions; Naked tax inversion; Redomicile; Earnings stripping; Naked inversion; Merger tax inversion
A tax inversion or corporate tax inversion is a form of tax avoidance where a corporation restructures so that the current parent is replaced by a foreign parent, and the original parent company becomes a subsidiary of the foreign parent, thus moving its tax residence to the foreign country. Executives and operational headquarters can stay in the original country.