A U.S. firm purchases a smaller firm in Ireland and moves its headquarters to Ireland, which has a much lower corporate tax rate than the United States has. The U.S. firm is practicing which type of tax strategy?

Question

Quizplus · Accepted Answer

Tax inversion is a strategy where a company relocates its legal domicile to a lower-tax nation or jurisdiction, usually through merging with or acquiring a foreign company, to reduce its tax burden.

A US Firm Purchases a Smaller Firm in Ireland and Moves