Washington Post: Giving up its U.S. citizenship could help this company avoid a $260 million tax bill
media mention“IHS is just the latest U.S. firm to be involved in a so-called inversion, in which U.S. companies are bought by or merge with foreign firms to reduce U.S. corporate tax burdens. IHS is merging with London-based Markit and has said the tax rate of the new combined company, IHS Markit, will be in the low-to-mid-20 percent range — far lower than the 35 percent corporate tax rate in the United States. “
IHS already appears to be aggressively shifting its profits offshore,” Gardner said. “Taking the additional step of inverting would make it easier for the company to ensure its already offshored profits will never be subject to U.S. taxes.”
The company declined to comment on its foreign profits but said in a statement Monday that it will continue to have a large presence in the United States. “We have adopted a tax structure we think is most appropriate for the combined company,” the company said in a statement.”