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

Dominik Gajewski

Abstrakt

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.
 

Słowa kluczowe: tax sparing credit clauses, advance pricing agreements, holding, optimalization
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.

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

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