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Offshore Finance Subsidiary

   Also found in: Wikipedia 0.01 sec.
Offshore finance subsidiary
A wholly owned affiliate incorporated overseas, usually in a tax haven country, whose function is to issue securities abroad for use in either the parent's domestic or foreign business.

Offshore Finance Subsidiary
A wholly-owned subsidiary that exists in a foreign country, especially a tax haven. An offshore finance subsidiary issues stocks and bonds on behalf of the parent company outside the jurisdiction of the home country. The issues will therefore be subject to fewer regulations and perhaps also less scrutiny.


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In a significant extension of revenue ruling 84-152, the IRS held in a letter ruling that a foreign-owned offshore finance subsidiary, established in a worldwide financial center, constitutes a conduit for U.
 
 
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