Tax inversion

A tax inversion is a structural change in a corporation, resulting in a favourable change to the tax residence of its headquarters.

The tax inversion may involve the acquisition of another company which is resident in a lower tax jurisdiction.

The headquarters of the enlarged group of companies would then be relocated to the lower tax jurisdiction.

Restructuring of this kind would normally be challenged by competition regulators or tax authorities, or both.

See also

• Inversion
• Jurisdiction
• Residence
• Tax