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US: Tyco Merger will shift Johnson’s taxes overseas

By  |  January 26, 2016

The march of companies abandoning their US citizenship for lower taxer overseas reached a new height Monday when manufacturers Tyco International and Johnson Controls said they had agreed to a merger.

Tyco and Milwaukee-based Johnson Controls are taking advantage of a tax loophole known as a corporate tax inversion in which an US-based company buys or merges with a foreign company and moves its headquarters to a country with a lower tax rate.

In this case the new company would be called Johnson Controls but would have its headquarters in Cork, Ireland, where Tyco is already based. The strategy would save the company about $150 million a year in taxes.

Full content: The New York Times

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