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tax inversion deal

A deal in which a company (usually US based) becomes a part of a bigger company that has its headquarters in a lower tax jurisdiction (like Ireland, for example). Many US companies have done this in the past because they can access a lower tax rate overseas but also because they can then use cash that has been “parked” overseas to avoid paying US taxes (it can be brought back to the US to do things like pay a dividend or invest in new businesses – but only when the company is no longer American). For more info, see our article on Apple’s CEO, Tim Cook, calling it “total political c*ap”.

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