Wired has the dope on the absurdity that is international tax laws:
“For sheer ingenuity, you can’t beat Silicon Valley—especially at outsmarting the tax man. By selling intellectual property rights to sock-puppet subsidiaries, tech giants shift profits to low-tax nations like Ireland. But that’s just a start. Sublicense the IP to a second Irish unit that books global sales, have entity B pay onerous royalties back to A (wiping out its earnings), then show that A is headquartered in the Caribbean, making its royalty income untaxable in Ireland. Slick! Only problem: Until the IRS gets its cut, the companies can’t bring the cash back home to use it. Hmm … not so genius after all.”
I would argue the Pharma reverse mergers are certainly in the running as well.
click for ginormous graphic