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 ?
Now post tax arbitrage returns will get compressed by 10%, but these would still be better than liquid funds and most of the ultra short funds.
6%, and analysts may later see a Q1 boost and downward Q4 revision as tax arbitrage is incorporated.
One school of thought says that now that there is no tax arbitrage (earlier you had CST of 2 per cent and VAT of 14-15 per cent), why do you need an e-way bill system?
At present, supply chains across major manufacturing industries are strategised based on the tax arbitrage aspect.
The gift tax is really a big deal because it's one of the ways the IRS prevents income tax arbitrage," says Delgass.
There is, thus, regulatory and tax arbitrage among these investment products.
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
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.
Harmonization also reduces the risk to taxpayers of double state taxation, as well as the risk to states of tax-base erosion through tax arbitrage.