Tax Haven Affiliates financial definition of Tax Haven Affiliates
Tax haven affiliate (redirected from Tax Haven Affiliates)
Tax haven affiliate
A wholly owned entity in a low-tax jurisdiction that is used to channel funds to and from a multinational's foreign operations. The tax benefits of tax haven affiliates were largely removed in the US by the Tax Reform Act of 1986
References in periodicals archive
The available evidence suggests that transfer pricing is sensitive to tax rate differences: reported pre-tax profit rates of foreign affiliates are inversely related to local tax rates;  royalty payments by foreign affiliates to their American parent companies are positively related to local tax rates;  American firms with tax haven affiliates
tend to have lower U.