Abstract
The modern landscape of international taxation presents complex challenges arising from cross-border transactions and diverse tax regimes. This Comment delves into the intricate world of tax inversions, a process whereby U.S. firms shift their corporate headquarters abroad, thereby exploiting different tax jurisdictions. The implications of tax inversions are significant, and some scholars estimate there are substantial global tax revenue losses.
This Comment examines the mechanics of tax inversions, analyzing the tools employed by multinational corporations to reduce their tax liabilities, such as debt concentration and earnings stripping. This Comment also explores legislative responses, including the No Tax Breaks for Outsourcing Act, designed to curb inversions and profit shifting.
This Comment will assess the effectiveness of these approaches and offer recommendations for refining legislation to close transnational tax loopholes, clarifying definitions, and addressing issues related to jurisdiction and taxation. In conclusion, this Comment will argue for a more comprehensive and cohesive approach to combat tax inversions and ensure equitable revenue distribution in the global tax landscape.