🔄 Turning upside down 🌫️ Trapped cold air 💼 Move for taxes 🎼 Reversed melody ✍️ Reversed word order 🏥 Organ turned inward 🧬 Gene order reversed ⚧️ Opposite gender role 🧪 Rotation change

inversion

1 7.4

A company changing its home country to pay less tax

noun
/ɪnˈvɜrʒən/

Specialized

: traslado del domicilio fiscal

Companies often engage in inversion to take advantage of lower tax rates abroad and reduce their overall tax burden.

Examples

Some of the proposed anti-tax-shelter bills would go beyond just shutting down Bermuda inversion transactions.

Academic text (2002)
Certain bills would deny the intended tax benefits of inversion transactions by treating the top-tier foreign corporation as if it were a U.S. company under the Internal Revenue Code.

Academic text (2002)
Congressional interest in the corporate tax-shelter area seems to have been piqued by the spate of publicity given to a maneuver known as the "Bermuda inversion."

Academic text (2002)
The strategy of inversion allows businesses to legally relocate their headquarters to countries with favorable tax laws.
After a successful merger, the inversion helped the corporation save millions in taxes by changing its legal domicile.

Compounds

matrix inversion

Specialized

8.6

To find a matrix that, when multiplied by the original, makes the identity matrix

sexual inversion

Slur

9.9

An old word for someone who behaves in ways usually seen in the other sex

Surface Forms

inversion singular

inversions plural

Morphology

inversion = invert (semi-transparent) = invert + ion

Morphologically a nominalization of 'invert', but the technical corporate meaning 'change domicile to reduce taxes' is specialized and not fully predictable for general learners.

Etymology

Inversion comes from the Latin invertere, where in- means 'in' and vertere means 'to turn'. A corporate inversion is when a company 'turns' its legal home to another country to change where it officially pays tax.