Tuesday 20 September 2016

Corporate Inversion - Rye

Today in class we discussed ideas for our topic of choice. One of which was how businesses can pay less tax. I watched both of these videos on how companies are able to lower their tax rates through what's called corporate inversion. Now normally a company based in America would have to pay a corporate tax rate of 35% but through the use of Corporate Inversion they only have to pay 12.5% corporate tax rate as they are merged with another company offshore for example Ireland and they label themselves as an Irish Company meaning they pay tax to Ireland rather than America. There is a lot of debate over this as this is completely legal to do however it takes the money of the public of one country and sends it to another and so the public aren't getting their money reinvested into the community.

No comments:

Post a Comment