IT Lecture week 24 – International Tax Structuring
This lecture will most likely be given by a guest lecturer who specializes in international tax structuring.
The reading requirements are:
14 16 2018 Anti abuse legislation The Importance of Substance in a Private Equity Fund Context
14 16 anti-avoidance how robust is a Structured Finance Deal
Read the double-dip leasing example in Chapter 1.4 of your Primer again – 1 Chapter Introduction on page 11
1 INTERNATIONAL OFFSHORE FINANCIAL CENTERS (IOFCs) planning checklist
International Tax- Tax Havens and Tax Avoidance report – look at:
Where Are the Tax Havens? ……………………………………………………………………………………………… 3
Methods of Corporate TaxCorporate Tax refers to the tax imposed by governments on the income or capital of corporations. Corporations, considered separate legal entities, are taxed on their profits, meaning the income generated from their operational activities, investments, and other financial undertakings. This tax is generally a key revenue source for governments, helping to fund public services, infrastructure, and other essential functions. The...Tax AvoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities... ………………………………………………………………………………… 9
Methods of Avoidance and Evasion by Individuals …………………………………………………………….. 24
Narrower Provisions Affecting Multinational Profit ShiftingProfit Shifting is a strategic practice employed by multinational enterprises (MNEs) to reduce their global tax liability by shifting profits from high-tax jurisdictions to low- or no-tax jurisdictions. The primary method involves transferring income-generating activities, intangible assets, or other high-value components within the group to countries with favourable tax regimes. Profit Shifting is a critical concern for tax authorities and... …………………………………………. 32
Options to Address Individual Evasion …………………………………………………………………………….. 34
HYBRID COMPANIES – read about this interesting type of company that ‘acts’ like a trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., but is not a trustA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms., and could be useful to side-step certain anti-avoidance provisions (eg. CFCControlled Foreign Corporations (CFCs) are a fundamental concept in international taxation, referring to foreign companies that are under the control of domestic shareholders. Control is typically established when residents of a country, either individually or collectively, own more than a specified percentage of a foreign company’s shares, voting rights, or have the ability to exert substantial influence over its decision-making.... rules) aimed at passive income receipts by trustsA comprehensive look at trusts in international tax law, including definitions, practical examples, key cases, and synonyms.. Look at this and think about what anti-avoidance rules may apply.
Study these structures and identify the potential international tax issues, by looking at the IOFC checklist above, and the controversial issues raised in the report/articles above on anti abuse/anti avoidance:
REVISED Lecture Tax Planning – Seminar Diagram Final
Also take a look at these recent anti-avoidance developments again:
14 16 BEPS OECD Harmful Tax Practices ‑ 2017 Progress Report on Preferential Regimes
This is a list of countries with ant-avoidance provisions: 14 16 Country Summary International Anti Avoidance provisions
Victor Thuronyi Comparative Tax Law – eBook, especially:
5.1 In General 133
5.2 Conflicting Maxims 136
5.3 Country Practice 137
5.4 Tax AvoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities...: Introduction 150
5.5 Tax AvoidanceTax avoidance refers to the practice of legally structuring financial activities to minimise tax liability, reducing the amount of tax owed without violating laws. Unlike tax evasion, which is illegal and involves concealing income or misreporting, tax avoidance operates within the framework of the law. Multinational enterprises (MNEs) and individuals often engage in tax planning strategies that reduce tax liabilities... and Evasion 154
5.6 Sham Transactions, Simulation, and Abuse of Law 157
5.7 General Anti-Avoidance Rules 160
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