IHS becomes latest company to give up U.S. citizenship for lower taxes

ihs-180px

https://www.washingtonpost.com/news/business/wp/2016/03/21/data-company-ihs-becomes-latest-to-give-up-u-s-citizenship-for-lower-taxes/

Data provider IHS announced a $13 billion merger Monday that would make it the latest U.S. company to move its headquarters overseas, where it would face lower taxes.

Colorado-based IHS is merging with the smaller London-based Markit in what is known as an “inversion,” in which U.S. companies are bought by or merge with foreign firms to reduce U.S. corporate tax burdens.

The new combined company, IHS Markit, would be based in London and have a corporate tax rate in the low-to-mid-20-percent range. That is far lower than the 35 percent corporate tax rate in the United States. IHS said some key operations would remain in Colorado.

“The rationale for the merger is to create the leading global information services company and benefit from identified cost and revenue synergies,” Ed Mattix, IHS’ senior vice president for corporate communications, said in a statement. “We have adopted a tax structure we think is most appropriate for the combined company.”

Lawmakers have grown increasingly frustrated by the tide of U.S. companies moving overseas to lower their tax rate. In November, pharmaceutical giant Pfizer announced plans to merge with Botox maker Allergan and move its headquarters to Ireland. That deal is expected to save the firm about $35 billion in taxes. Last month, Johnson Controls announced it would merge with Tyco and move its headquarters to Cork, Ireland. Johnson Controls said the strategy would save the new company – with a market cap of about $36 billion – about $150 million a year in taxes.

Business groups have argued that inversions will continue until Congress lowers the U.S. corporate tax rate, which is the highest in the developed world. But lawmakers are not likely to take action before the presidential election this year, and Republicans and Democrats remain split on the best way to reform the corporate tax code.

https://en.wikipedia.org/wiki/IHS_Inc.

————

bit like this logo?:

2000px-Ihs-logo.svg

running to the tax havens of the canary islands or monaco?

no..off to the uk they go!

“The new combined company, IHS Markit, would be based in London and have a corporate tax rate in the low-to-mid-20-percent range. That is far lower than the 35 percent corporate tax rate in the United States. IHS said some key operations would remain in Colorado.”

*irony

“Lawmakers have grown increasingly frustrated by the tide of U.S. companies moving overseas to lower their tax rate. In November, pharmaceutical giant Pfizer announced plans to merge with Botox maker Allergan and move its headquarters to Ireland. That deal is expected to save the firm about $35 billion in taxes. Last month, Johnson Controls announced it would merge with Tyco and move its headquarters to Cork, Ireland. Johnson Controls said the strategy would save the new company – with a market cap of about $36 billion – about $150 million a year in taxes.”

401

~ by seeker401 on March 24, 2016.

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