Tyco CEO: Tax deals put focus on US system

Tax inversions like that announced by Tyco and Johnson Controls in January will always attract criticism but also serve to focus attention on the US tax system, according to Tyco’s chief executive.

The $16.5bn (€15.04bn) merger of fire and security specialists, Tyco and the US building efficiency firm will deliver $150m of tax savings each year and $500m in costs over the first three years.

The so-called tax inversion, which will see the newly combined entity domiciled in Ireland with its global headquarters in Cork, drew strong criticism in the US with presidential hopefuls such as Democratic candidate Bernie Sanders calling it a disaster for US taxpayers.