Prof. Hill Answers WCCO-TV's 'Good Question': 'Why Can Companies Use Tax Inversion?'

Professor Claire Hill appeared in the "Good Question" segment on WCCO News, answering the question, "Why Can Companies Use Tax Inversion?" Tax inversions, in which U.S. companies enter into transactions with foreign corporations such that they would no longer be taxed as U.S. corporations, are much in the news. Hill commented on Burger King's proposed transaction with Canadian corporation Tim Horton. Hill noted that it's not just corporations that seek to minimize their tax liability—that individuals in their day-to-day lives do so as well. She noted, too, that a company couldn't avoid paying U.S. tax on its U.S. operations by doing an inversion—that it would just avoid paying tax on its worldwide income, which U.S. corporations have to do under the US tax system.