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A wave of these tax-driven transactions swept through corporate
America from 2011-2014. They largely ended in 2015 after a
regulatory crackdown by the administration of former President
Barack Obama . Previous waves had occurred in 1996-2002 and
2007-2009.
The Congressional Budget Office, a nonpartisan fiscal analysis
arm of the U.S. Congress, said profitable companies in the most
recent wave reduced their worldwide tax expenses by $45 million
on average in the year after doing their inversions. (http://bit.ly/2xc03Pn)
"CBO projects that the U.S. corporate income tax base will be
reduced because of further inversion activity and the expansion
of strategies to move profits to lower-tax jurisdictions," the
CBO said in its study.
It said U.S. corporate tax revenues would shrink by 2.5 percent
by 2027 "if tax-minimization strategies were effectively
unchanged from those used in 2016."
Recent inversions included medical technology group Medtronic
Plc's move <MDT.N> to Ireland, and drugmaker Mylan NV's move <MYL.O>
to the Netherlands, both completed in 2014.
Mylan's operational headquarters is still in Pennsylvania, while
Medtronic's is still in Minnesota, but both companies no longer
are treated as U.S.-based companies for tax purposes.
(Editing by Kevin Drawbaugh and Lisa Shumaker)
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