Jurisdictional Arbitrage


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Jurisdictional Arbitrage

The practice of moving an office, factory or something else in order to come under the jurisdiction of a different regulatory agency with more lenient rules. For example, a corporation unwilling to pay corporate taxes to the state of California may move its head office to Arizona, outside the jurisdiction (in most circumstances) of the California tax authorities. Jurisdictional arbitrage is a type of regulatory arbitrage.
References in periodicals archive ?
Law enforcers, too, fail as perpetrators usually operate from foreign shores and use 'jurisdictional arbitrage' - which means operating from jurisdictions with lax laws such as Africa and Eastern Europe - to get away.
They use jurisdictional arbitrage. They know which geographies have lax laws, and that law enforcement agencies will focus only on problems in their jurisdictions.
Law enforcers too fail as perpetrators usually operate from foreign shores and use ' jurisdictional arbitrage'-- which means operating from jurisdictions with lax laws such as Africa and Eastern Europe-- to get away.