TY  - JOUR
T1  - Moving Money across Borders in the Perspective of International Taxation
AU - Sumathisri, B. 
JO  - International Business Management
VL  - 7
IS  - 3
SP  - 151
EP  - 157
PY  - 2013
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2013.151.157
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2013.151.157
KW  - tax harmonization
KW  -tax havens
KW  -hedging
KW  -dividend drains
KW  -Capital flows
KW  -tax equity
KW  -tax index
KW  -unbundling
AB  - Taxation plays a vital role in international operation of 
  firms. It is the core of various financial decisions, such as international 
  investment decisions, international working capital decisions, funds raising 
  decisions concerning dividend and other payments. It is true that the tax issue 
  is relevant to such decisions also in respect of domestic firms. But, the management 
  of taxation is a highly complex issue for international corporations. There 
  are two types of foreign investment, namely foreign direct investment and foreign 
  portfolio investment. Pursuing the objectives of utilizing the firms’ cash resources 
  most efficiently and minimizing the firms’ global tax liability requires the 
  firm to be able to transfer funds from one location to another around the global. 
  International businesses use a number of techniques to transfer liquid funds 
  across borders. These include dividend remittances, royalty payments and fees, 
  transfer prices and fronting loan. The investors are interested in real rates 
  of return net of taxes. The international tax system should be neutral that 
  is it should not affect economic efficiency. At the same time, it has to be 
  equitable ensuring equal sacrifice by different tax payers. Besides, a firm 
  should not be taxed twice for the same income. Some firms use tax havens to 
  minimize their tax liability. The OECD has published a list of 35 tax havens. 
  So, the OECD is very much concerned to remove the loopholes in the tax system 
  and other obstacles in cross border trade and investment.
ER  -