I have written before about one method by which huge highly profitable corporations avoid taxes. The way it works is for a big company in the US (say) to buy a small company in a country that has favorable tax laws, Ireland being the current favored nation. They then ‘invert’ the relationship, claiming that the foreign company is the parent one while the US one is the subsidiary, even though nothing else has changed. This enables them to pay the lower taxes of the other nation while enjoying all the benefits of being in the US. This practice even has a name: ‘corporate perversion’.
[Read more…]