When giant Burger King acquired tiny and troubled Tim Horton’s they did an inversion: The resulting corporation was the legacy Tim Horton’s, Burger King was the subsidiary, and home country moved from Obama’s America to Canada, saving a great deal of money in taxes and a great deal of red tape.
The Cayman Islands beckon. Wouldn’t you rather have corporate headquarters in the Bahamas than Chicago?
Illinois completes the death spiral.
Fortunatly, Orange Man Bad’s tax cuts eliminated extraterritorial taxation starting in 2018, so we should see a lot fewer of these inversions in the future.