CORPORATE EXPATRIATIONS: LOOSENING THE BONDS OF CONTROL

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Jackie Johnson ORCID logo, Mark Holub

https://doi.org/10.22495/cocv5i1c1p4

Abstract

Following criticism of former U.S. corporations for reincorporating offshore, legislation was proposed to remove any financial advantage gained. The move offshore has significant tax implications for the U.S. Treasury, so proposed legislation has tried to either retain some U.S. control over the companies or limit their U.S. government business. Results indicate that individual expatriates show little effect from two years of anti-expatriation proposals and are unlikely to reverse their reincorporation decision. With the Bush administration’s pro-corporate agenda there is little hope for a forceful anti-expatriation stance. Meanwhile the decline in corporate tax revenue continues to be a problem for the U.S. Treasury as they lose control of tax revenue as the budget is squeezed by needs at home and abroad.

Keywords: Corporate Governance, Corporate Control, Expatriation, Corporate Inversions, Expatriation Legislation, Tax Avoidance

How to cite this paper: Johnson, J., & Holub, M. (2007). Corporate expatriations: loosening the bonds of control. Corporate Ownership & Control, 5(1-1), 202-213. https://doi.org/10.22495/cocv5i1c1p4