More Companies Leave US For Lower Taxes


Published 07/08 2014 08:23AM

Updated 07/08 2014 08:27AM

More companies than ever are abandoning the US for nations with lower taxes.

That's according to a new analysis by the Congressional Research Service.

It found 47 companies relocated to home bases overseas to take advantage of lower rates in the past 10 years through a merger process known as inversion.

To qualify for the lower taxes, a company must do more than simply set up shop overseas and change its address.

It must first merge with a company in the lower-tax country.

Then it must do at least a quarter of its business overseas.

Or it must give the owners of the foreign company at least one-fifth ownership of the newly merged company.

Only 29 companies used the inversion process during the previous two decades.

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