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Tax dodging: What's legal and what's not? Take the quiz.

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26. How do corporate inversions work?

Richard Drew/AP/File
The Pfizer logo appears on a screen above its trading post on the floor of the New York Stock Exchange (April 6, 2016). The biggest U.S.-based drugmaker, Pfizer Inc., will stay put thanks to aggressive new Treasury Department rules that succeeded in blocking Pfizer from acquiring rival Allergan and moving to Ireland, on paper, to reduce its tax bill.

One company eats another company for breakfast.

A company moves its operations abroad to reduce its tax burden.

Two companies go their separate ways.

A company that wants to keep paying US taxes stays in the states, under a different name.
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