Capital Corp Merchant Banking

Capital Corp Merchant Banking

Highlights

Many regulators were now accusing the company of treaty shopping. The senior management team now wished to reevaluate their inversion decision.

The purpose of a corporate inversion was for all intents and purposes to reduce the tax liability. The Unites States taxed US based multinational companies on their worldwide income. As a US based company, Stanley paid corporate income taxes on all income generated in the US and income earned abroad and repatriated or deemed repatriated to the parent company in the US. It was this latter tax on foreign source income which was at the heart of the dilemma for companies like Stanley.