Which of the following statements accurately describes tax inversion?
1) Tax inversion is a process where a company relocates its headquarters to a country with lower tax rates.
2) Tax inversion is a process where a company merges with a foreign company to reduce its tax liability.
3) Tax inversion is a process where a company avoids paying taxes by using loopholes in the tax system.
4) Tax inversion is a process where a company transfers its profits to a subsidiary in a low-tax jurisdiction.
