The Department of the Treasury and the Internal Revenue Service (IRS) acted last week to make corporate inversions more difficult for companies looking to swap their American address for a lower tax rate.
Corporate inversions allow U.S. corporations to register as a foreign corporation in order to lower the taxes they owe. But the transaction occurs largely on paper— meaning the location of many of a company’s employees, the markets the company serves, and the products themselves are unlikely to change significantly.