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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Tax Haven Affiliate
A wholly owned subsidiary of an American corporation in a foreign tax haven. Prior to the Tax Reform Act of 1986, a corporation could avoid taxes by placing a certain amount of its income in its tax haven affiliate, but this benefit is generally no longer permissible.
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