The corporations around the world are required to pay taxes on their profits. The range of corporate taxes varies in different countries of the world. It is a known fact that many organizations try to minimize their accountability of tax through tax avoidance or tax evasions. However, the recent approach used by the corporations to reduce their tax bill is the tax inversion. The corporations are shifting their headquarters to the countries with relatively low corporate taxes than the United States. The latest instance of this process is the announcement made by the US drugmaker AbbVie to buy the U.K.-based Shire and appear as the subsidiary of the UK firm. Although this is legal under the US Treasury laws, it also raises some ethical issue. The corporations are not fulfilling their ethical and social responsibility towards their country. The transfer of headquarters from the US means offering jobs to the foreigners and depriving the countrymen of the jobs. Moreover, it may also lead to slow economic development in the US. This situation can be handled properly if the corporations instead of moving to low tax countries, stay in the US and strive to make the government lower the tax rate. The government, on the other hand, is also required to take effective measures to address the issue.