Essay Available:
Pages:
2 pages/≈550 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Research Paper
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 12.64
Topic:
Tax Inversion Considerations
Research Paper Instructions:
In this short paper, you will consider a tax inversion scenario and write a memorandum explaining the pros and cons related to the scenario based on your tax research. Describe how the Tax Cuts and Jobs Act changed the course of companies considering inversions. Do you think the new tax reform helped or hurt the United States in competing with the rest of the world?
To complete this assignment, review the Module Two Short Paper Guidelines and Rubric PDF document.
Research Paper Sample Content Preview:
TAX INVERSION
Student’s Name
Institutional Affiliation
Course
Instructor
Date
Memo
To: Client
From: [Your Name]
Subject: Tax Inversion Considerations
Based on the research, though the potential tax savings from a tax inversion to Switzerland are substantial—given that the corporate tax rate is only 5%—it is also essential to consider other factors. For example, in the current climate, companies face heightened public scrutiny regarding their tax arrangements (What Are Inversions, and How Will TCJA Affect Them? 2020). As detailed in the PwC report, tax has become a reputational issue, with the public increasingly interested in whether companies are paying their fair share (PWC, 2013). Consequently, relocating the combined company's domicile to Switzerland could result in unfavorable public perception and regulatory backlash.
A tax inversion is not without risks. One notable example is the attempted merger between Pfizer Inc. and Allergan Plc in 2016. The merger would have allowed Pfizer to move its tax domicile to Ireland, where the corporate tax rate is significantly lower. However, the US Treasury Department released new rules that made the inversion less advantageous for Pfizer, and the merger ultimately fell through. Additionally, the Tax Cuts and Jobs Act of 2017 included provisions that discourage companies from shifting profits overseas, such as the Base Erosion and Anti-Abuse Tax (BEAT) and the Global Intangible Low-Taxed Income (GILTI) tax (Pilkington, 2015). In response to the public backlash, Pfizer CEO Ian Read wrote an op-ed in the Wall Street Journal defending the merger as a strategic business decision.
Another recent example is the failed inversion of Walgreens, a victim of the TCJA made by the U.S. corporate tax rate. In 2014, the company proposed a merger with Alliance Boots, a European pharmacy chain, which would have allowed Walgreens to move its tax domicile to Switzerland. However, the TCJA's changes likely influenced Walgreens' decision ...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
👀 Other Visitors are Viewing These APA Research Paper Samples:
- Comparison of Historical and Current Accounting for Pensions and Life Insurance Benefits7 pages/≈1925 words | 7 Sources | APA | Accounting, Finance, SPSS | Research Paper |
- Financial Statements, Inventory Write-Downs, and the Federal Tax Laws8 pages/≈2200 words | APA | Accounting, Finance, SPSS | Research Paper |
- Individual Research Company. Accounting, Finance, SPSS Research Paper2 pages/≈550 words | APA | Accounting, Finance, SPSS | Research Paper |
- Accounting Journal Reviews1 page/≈275 words | 1 Source | APA | Accounting, Finance, SPSS | Research Paper |
- Growth Strategies 11 pages/≈3025 words | 4 Sources | APA | Accounting, Finance, SPSS | Research Paper |
- Research and Describe Budget Planning and Control2 pages/≈550 words | 5 Sources | APA | Accounting, Finance, SPSS | Research Paper |
- Johnson Controls Capital Investments5 pages/≈1375 words | 4 Sources | APA | Accounting, Finance, SPSS | Research Paper |