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Taxes

Debt dumping

When a company is unable to collect a debt, it may choose to transfer it to a group company in a different country with a higher tax rate. This allows the company to write off the debt in that country and potentially reduce its overall tax liability. This strategy, known as debt shifting, is a commonly used tactic in the world of finance. It is important for companies to carefully consider the potential tax implications and legal requirements before engaging in such actions.

Related terms

Recovery of tax

Understand the meaning and definition of Recovery of tax in the context of stock market, trading, and investments.

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Fringe benefits

Understand the meaning and definition of Fringe benefits in the context of stock market, trading, and investments.

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Tax form

Understand the meaning and definition of Tax form in the context of stock market, trading, and investments.

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Arbitrage, tax

Understand the meaning and definition of Arbitrage, tax in the context of stock market, trading, and investments.

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Constructive dividend

Understand the meaning and definition of Constructive dividend in the context of stock market, trading, and investments.

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Local tax

Understand the meaning and definition of Local tax in the context of stock market, trading, and investments.

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