5 ms·

Is this considered a loophole in the system?

• appleiigs 8y ago
  No, it’s a well known maneuver. Was popular in the past few years to reduce taxes. From an Washington Post article: “The idea behind the business maneuver, called a corporate inversion, is simple: a U.S. company merges with a foreign one and moves its headquarters abroad, avoiding the high U.S. corporate tax rate of 35 percent on foreign income”.
  • tdhoot 8y ago
    To be clear, a corporate inversion is generally used to reduce taxes. I believe when you're simply doing it to avoid the IPO process it's just called a backdoor listing.