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Tax Sparing Credit Clauses and Advance Pricing Agreements as Important Instruments for Tax Optimization

Publication date: 12.12.2018

Financial Law Review, 2018, Issue 12 (4)/ 2018, pp. 18 - 27

https://doi.org/10.4467/22996834FLR.18.018.9999

Authors

Dominik Gajewski
Warsaw School of Economics, Al. Niepodleglosci 162, 02-554 Warsaw, Poland
https://orcid.org/0000-0002-7935-9221 Orcid
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Titles

Tax Sparing Credit Clauses and Advance Pricing Agreements as Important Instruments for Tax Optimization

Abstract

The article is devoted to instruments used by international holding companies in their tax optimization strategies. Some of the most commonly adopted instruments include: tax sparing credit clauses and advance pricing agreements. They are particularly frequently used by related entities operating on the territory of the European Union. The article presents an analysis of these constructions with particular indication of tax effects that have a significant influence on reduction of tax liabilities of related entities operating in various residences for tax purposes. The author demonstrates how these instruments can be adopted in various ways, which are often extremely different from the legislator's intention.
 

References

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List of documents:

Background Document on the Replies Received from Member States to the Questionnaire on the Application of Transfer Pricing Rules and Arbitration Convention, Brussels 2002.

Commision of the European Communities, Brussels 2001.

Transfer Pricing 2003. Global Survey, Ernst&Young.

Wytyczne w sprawie cen transferowych dla przedsiębiorstw wielonarodowych oraz administracji podatkowych [Guidelines on Transfer Pricing for Multinational Corporation and Tax Administration], Warsaw, 2004

Information

Information: Financial Law Review, 2018, Issue 12 (4)/ 2018, pp. 18 - 27

Article type: Original article

Authors

https://orcid.org/0000-0002-7935-9221

Dominik Gajewski
Warsaw School of Economics, Al. Niepodleglosci 162, 02-554 Warsaw, Poland
https://orcid.org/0000-0002-7935-9221 Orcid
All publications →

Warsaw School of Economics, Al. Niepodleglosci 162, 02-554 Warsaw, Poland

Published at: 12.12.2018

Article status: Open

Licence: CC BY-NC-ND  licence icon

Percentage share of authors:

Dominik Gajewski (Author) - 100%

Article corrections:

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Publication languages:

English