Page 6 - Strategic Tax Planning for Global Commerce & Investment

1. Profit Migration Strategies ....................................................... 13

2. Jurisdictional Strategies ............................................................ 16

Developing a Tax Planning Strategy ................................................ 16

1. Profit Management ................................................................... 17

2. Tax and Attribute Management .............................................. 18

3. Treasury Management ............................................................. 18

Tax Planning for Financing Activities ............................................. 19

1. Debt Versus Equity Financing ................................................. 20

The Effect of Withholding Tax ................................................. 21

Effect of Form of Financing on ETR ........................................ 22

How a Multinational Can Change the Mix of Debt vs. Equity
24

Use of Intragroup Financing Companies ................................ 25

Synthetic low-tax Finance Companies using hybrid
instruments ........................................................................................ 27

Synthetic low-tax Finance Companies using Hybrid
Entities ................................................................................................ 28

The Arm’s-Length Interest Rate ......................................... 28

2. Asset Financing ........................................................................ 29

Tax Planning for Intellectual Property ............................................ 31

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