Which of the following statements accurately describe the practice of tax inversion?
A) A company shifts their headquarters to a foreign country.
B) A company decreases cash holdings in a foreign country.
C) A company increases debt in their home country.
D) Both A and C, but not B

Question

Quizplus · Accepted Answer

Tax inversion involves a company shifting their headquarters to a foreign country (A) for tax purposes, as well as increasing debt in their home country (C) to make the move financially feasible. Decreasing cash holdings in a foreign country (B) is not necessarily part of the practice of tax inversion.

Which of the Following Statements Accurately Describe the Practice of Tax