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Tax inversions 'unsurprising', says Taxand chairman

Tax inversions 'unsurprising', says Taxand chairman
Global
26 Aug 2014

First published in the Financial Director, 26 August 2014

The US's harsh tax climate is driving companies to seek to create foreign tax centres, says Frederic Donnedieu, chairman of tax practice network Taxand.

The US regime is "at odds" with other jurisdictions across the globe which are taking steps to make their tax environments more attractive to multinational companies, Frederic Donnedieu said.

"The rationale for inversions is not simply on a reduction in the overall corporate tax rate, but also to escape the burden of complex US tax rules that add to compliance costs, such as the controlled foreign corporation legislation, and to satisfy longer-term business objectives in relation to overseas expansion," he said.

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The rationale for inversions is not simply on a reduction in the overall corporate tax rate, but also to escape the burden of complex US tax rules that add to compliance costs, such as the controlled foreign corporation legislation, and to satisfy longer-term business objectives in relation to overseas expansion.

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