Looks like this backdoor method of going public is becoming more popular. I know some Chinese privately owned companies are seeking to go public in US OTCBB market this way. There has been some discussion on this board about this issue. I wonder how these companies are treated on tax issue. If they reverse merge into an US shell company, do they need to pay tax to US authority, since now they are US companies? If so, this might take away any benefits associated with going public. I am curious. Hope experts on this area can share some insights.
