Tax Inversion

C1 16+

Pronunciation: /tæks ɪnˈvɜrʒən/

Definitions of tax inversion

noun a corporate strategy where a company relocates its headquarters to a lower-tax country in order to reduce its tax liability

Example Sentences

A1 Tax inversion is a term used in finance.

A2 Companies often engage in tax inversion to reduce their tax liabilities.

B1 Tax inversion can have legal implications depending on the jurisdiction.

B2 Tax inversion is a controversial practice that some argue should be regulated.

C1 The complexity of tax inversion strategies requires careful consideration by financial experts.

C2 Tax inversion schemes have been criticized for exploiting legal loopholes in tax laws.

Examples of tax inversion in a Sentence

formal Tax inversion is a strategy used by multinational corporations to reduce their tax burden by relocating their headquarters to a country with lower tax rates.

informal Tax inversion is like when a company moves its headquarters to a different country to pay less taxes.

slang Tax inversion is when big companies play the tax system to pay less money to the government.

figurative Tax inversion is like a game of musical chairs where companies try to find the best seat to avoid paying high taxes.

Grammatical Forms of tax inversion

plural

tax inversions

present tense

tax invert

future tense

will tax invert

perfect tense

have tax inverted

continuous tense

are tax inverting

singular

tax inversion

positive degree

tax inversion

infinitive

to tax invert

gerund

tax inverting

participle

tax inverted

Origin and Evolution of tax inversion

First Known Use: 1982 year
Language of Origin: English
Story behind the word: The term 'tax inversion' originated in the field of finance and corporate taxation.
Evolution of the word: Initially used to describe the practice of a company relocating its headquarters to a lower-tax jurisdiction to reduce its tax burden, the term 'tax inversion' has since evolved to encompass a broader range of tax avoidance strategies employed by multinational corporations.