Medi Assist Healthcare IPO

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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.
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