CORPORATE INVERSION - WHAT DOES IT MEAN?

American drug giant Pfizer's failed bid to acquire AstraZeneca, has brought the term Corporate Inversion into greater focus, in recent months. At the risk of over simplifying, all that a corporate inversion entails, I will try to explain what the term means. In essense, a corporate inversion is a legal tax avoidance strategy, used primarily, by large multinational corporations, to move their corporate headquarters, from their home jursidiction, to another jurisdiction/country, where they enjoy lower, more friendly, tax treatment.