What's A Corporate Inversion?

ST. PAUL, Minn. (AP) — Business transactions known as corporate inversions are getting increasing attention from Wall Street and U.S. government officials. Here's a snapshot:

WHAT ARE THEY?

Corporate inversions involve mergers between U.S. and foreign firms where a new parent company is based abroad. That can often shave the domestic tax bill of the American company even if their executives and most of their operations remain stateside.

ARE THEY COMMON?

According to congressional researchers, nearly 50 U.S. companies have completed such transactions in the past decade and more are in the works.

WHAT'S THE POINT?

Companies that have inverted don't escape all U.S. taxes on their profits, but they can use various techniques to shield some of those earnings from tax collectors.

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