Corporate tax inversion

Alright kiddo, let me try to explain this to you in a way you can understand.

Do you remember the game of tag where your friends would chase you and try to catch you? Pretend you are a big company playing this game with the government. The government is trying to catch you and take some of your money as taxes.

Now, let's say you and your company friends run to a tree and touch it. That tree is like a foreign country. Once you touch the tree, you are safe from being caught by the government (or at least for a while). This is what we call a tax haven.

So, some big companies have been doing something similar called "corporate tax inversion". They are like the big kids who run to the tree to avoid getting caught. They do this by merging with a smaller company in a foreign country and becoming a new company based in that country.

This allows them to pay lower taxes than they would pay in their home country. By doing this, they avoid paying a lot of taxes to the government, which can save them a lot of money.

But, some people think this isn't fair. They believe the companies should pay their fair share of taxes in their home country instead of finding ways to avoid paying them.

So, that's what corporate tax inversion is all about. It's like a game of tag between big companies and the government, and the companies are trying to avoid being caught by running to a tree (or a foreign country) to pay less taxes.