Tax arbitrage

Tax arbitrage

Trading that takes advantage of a difference in tax rates or tax systems as the basis for profit.

Tax Arbitrage

A form of arbitrage in which one attempts to profit on price differences on the same security resulting from different tax systems in the countries or jurisdictions in which the security is traded.
References in periodicals archive ?
He said efforts are on to ensure a uniform tax regime across northern states to minimise tax arbitrage and eliminate corrupt practices.
Even with a current dividend and no deliTral, Jerry achieves an income tax arbitrage of 5235.
Analysts fear such tax arbitrage, if it is taking place, acts to disguise the true nature of Chinese surplus.
The FM has raised a concern that this allows tax arbitrage opportunity
To remove tax arbitrage, rate of tax on long term capital gains has been increased from 10 percent to 20 percent on transfer of units of Mutual funds, other than equity oriented funds.
A third, related, international tax arbitrage transaction is the "hybrid equity" arbitrage transaction.
Since the first wave of tax-related stories hit in 2012, a number of factors have since converged to produce a perfect storm: businesses are under pressure to demonstrate a full and fair tax policy; regulators must address some of the glaring inconsistencies inherent in their tax codes; and governments have to work together to design an international tax framework that closes the door on excessive tax arbitrage and avoidance.
Binding taxpayers to their federal elections can simplify recordkeeping, ease the tax preparation burden for taxpayers, lower the risk of taxpayer mistake, increase the state's ability to benefit from Internal Revenue Service (Service) enforcement efforts, and reduce opportunities for tax arbitrage.
Tax arbitrage "is premised on the fact that a commercial activity is taxable at the usual rate of tax and seeks out differences in tax rules in two (or more) jurisdictions to achieve a tax benefit," according to Feetham (Nottingham Law School, Nottingham Trent U.
In the past, authorities around the world have tended to be tolerant of the proliferation of complex legal structures designed to maximise regulatory and tax arbitrage.