BROWSE

Tax Arbitrage

What is 'Tax Arbitrage'

The practice of profiting from differences between the way transactions are treated for tax purposes. The complexity of tax codes often allows for many incentives which drive individuals to restructure their transactions in the most advantageous way in order to pay the least amount of tax. Some forms of tax arbitrage are legal while others are illegal.

Explaining 'Tax Arbitrage'

Tax arbitrage can, for example, involve recognizing revenues in a low tax region while recognizing expenses in a high tax region. Such a practice would minimize the tax bill by maximizing deductions while minimizing taxes paid on earnings. It is suspected that tax arbitrage is extremely widespread, but by its nature, it is difficult to give precise figures as to what extent tax arbitrage is employed.


Further Reading


An equilibrium analysis of debt financing under costly tax arbitrage and agency problems
www.jstor.org [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Dividend taxation and intertemporal tax arbitrageDividend taxation and intertemporal tax arbitrage
www.sciencedirect.com [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

How prevalent is tax arbitrage? Evidence from the market for municipal bondsHow prevalent is tax arbitrage? Evidence from the market for municipal bonds
www.nber.org [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Cross-border investing with tax arbitrage: The case of German dividend tax creditsCross-border investing with tax arbitrage: The case of German dividend tax credits
academic.oup.com [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Tax competition: a literature reviewTax competition: a literature review
academic.oup.com [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Taxable and tax-deferred investing: a tax-arbitrage approachTaxable and tax-deferred investing: a tax-arbitrage approach
academic.oup.com [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Tax Arbitrage, Inflation, and the Taxation of Interest Payments and ReceiptsTax Arbitrage, Inflation, and the Taxation of Interest Payments and Receipts
heinonline.org [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Accelerated Capital Recovery, Debt, and Tax ArbitrageAccelerated Capital Recovery, Debt, and Tax Arbitrage
www.jstor.org [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Tax arbitrage and labor supplyTax arbitrage and labor supply
www.sciencedirect.com [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …

Financial Innovation, tax arbitrage, and retrospective taxation: the problem with passive government lendingFinancial Innovation, tax arbitrage, and retrospective taxation: the problem with passive government lending
heinonline.org [PDF]
… UYV in Figure 3. Note that because of the opportunity to avoid taxes (albeit at … Suppose that Congress acts to increase effective rate of taxation on corporate bond investments … The introduction of the tax avoidance function integrates the seemingly contra- dictory models of Miller …


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