Tax Dynamics of (U.S.) Corporate Expatriations

Sartori, Nicola
October 2010
Global Jurist;Oct2010, Vol. 10 Issue 3, p3
Academic Journal
This article addresses the main issues that corporate inversion transactions (or expatriations) raise both from the perspective of the corporations as well as from that of the policy makers (focusing on the U.S. government). In the first part, the inversion transactions will be defined and the most common juridical forms through which the transaction takes place and the consequent tax treatment will be synthetically described. In the second part, a historical analysis of the phenomenon in the U.S. will be provided. In the third part, the tax motives why American corporations have decided to invert (or may decide to invert in the future) will be investigated. The basic features of the U.S. international tax rules that encourage corporations to expatriate will be investigated. Considering the existence of an international tax regime, and the significant degree of convergence in international tax matters, the conclusions can be clearly adopted by other policy makers. In the last part, an overview of other possible policy tools that may be implemented in the future (in the U.S. or in other jurisdiction) to efficiently prevent inversion transactions will be shown, as a conclusion of the article. More specifically, a change in the definition of corporate residency for tax purposes, the use of corporate governance tools as tax anti-avoidance measures and a reconsideration of the residence based taxation principle will be proposed as possible solutions to prevent domestic corporations from expatriating.


Related Articles

  • COMPANIES ACT SIMPLIFIED.  // Accountancy;Nov70, Vol. 81 Issue 927, p784 

    Reports that under the Companies' Regulations of 1970, British companies are no longer obliged to show the previous year's corresponding amounts for additions and deletions of fixed assets and for sources and applications of movements on reserves.

  • CA 1981: guide to problem areas.  // Accountancy;Mar1985, Vol. 96 Issue 1099, p36 

    Reports on the publication of 'Companies Act 1981: Practical Guidelines on Company Accounts' in Great Britain. Goal of providing a guide to the problems related to the interpretation and implementation of the Companies Act 1981.

  • Posner on Tax: The Independent Investor Test. Listokin, Yair // University of Chicago Law Review;2019 Special issue, Vol. 86, p1157 

    The article discusses the views of U.S. Judge Richard Posner in relation to a ruling on a tax law multifactor test in the case Exacto Spring Corp v Commissioner of Internal Revenue. Topics include implications for U.S. corporate tax law, the notion of an independent investor test, and return on...

  • Corporate Governance in the UK. Mayer, Colin // Hume Papers on Public Policy;2000, Vol. 8 Issue 1, p1 

    Discusses the various aspects of corporate governance in Great Britain. Differences in concentration of ownership between Great Britain and elsewhere in Europe; Characteristics of the board system; Role of non-executive directors or institutional investors in the performance of governance...

  • Corporate Governance Reform: Britain as an Exporter. Cheffins, Brian R. // Hume Papers on Public Policy;2000, Vol. 8 Issue 1, p10 

    Focuses on historical background to illustrate the workings of corporate governance in Great Britain. Introduction of the English common law in many areas throughout the world; Drawbacks to the British company law abroad; Overview of corporate governance guidelines and their impact outside...

  • Corporate Governance: The Company Law Review and Questions of 'Scope'. Parkinson, John // Hume Papers on Public Policy;2000, Vol. 8 Issue 1, p29 

    Examines corporate governance in the context of the 'Scope of Company Law' in Great Britain. Justifications for departing from the principle of 'shareholder exclusivity'; Economic case for reviewing the scope of company law; Role of company law in supporting co-operative relationships.

  • How The Strategic Framework for UK Company Law Reform Undermines Corporate Governance. Sternberg, Elaine // Hume Papers on Public Policy;2000, Vol. 8 Issue 1, p54 

    Discusses the effect of company law reform on corporate governance in Great Britain. Meaning of corporate governance; Nature of the corporation and corporate purposes; Defects of the stakeholder doctrine; Establishment of accountability to all stakeholders.

  • Response to Peter C. Kostant's `Exit, voice and loyalty in the course of corporate governance... Blair; Stout, Margaret M. // Journal of Socio-Economics;1999, Vol. 28 Issue 3, p251 

    Comments on the article `Exit, Voice and Loyalty in the Course of Corporate Governance and Counsel's Changing Role,' by Peter C. Kostant. Exit and voice as alternative responses to organizational decline; Encouragement of the beneficial exercise of voice by legal rules; Negligence of the role...

  • A brief comment on legal and economic theories of corporate governance: A reply to Kostant's... Burke // Journal of Socio-Economics;1999, Vol. 28 Issue 3, p255 

    Comments on the article `Exit, Voice and Loyalty in the Course of Corporate Governance and Counsel's Changing Role,' by Peter C. Kostant. Corporate governance from a legal and economic perspective; Need for changes in the corporate order to promote fairness and efficiency; Evolution of fiduciary...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics