Volume 39 (2011) / Issue 10
Although there is a confounding variety of cross border dividend withholding tax planning techniques available to the modern corporate taxpayer this study has sought to identify, analyse and categorize these techniques in abstracto and, unless stated otherwise, without linking these techniques to particular countries. Part 1 of this two-part study identifies, analyses and categorizes the so-called formal dividend withholding tax planning techniques. Part 2 identifies, analyses and categorizes the so-called substantive dividend withholding tax planning techniques. In addition, part 2 provides a framework whereby the various dividend withholding tax planning techniques can be categorized in a consistent and universal manner.
Such framework may have more than a purely academic value. It may be of benefit for the corporate taxpayer and his advisors since the framework can make clear what sorts of dividend withholding tax planning techniques are worldwide available and what planning technique the respective taxpayer may suit best. In addition, the framework can also be of benefit to governments. It may proof a tool to categorize and administer what planning techniques are used by what sort of taxpayer and at what frequency. Moreover the framework may perfectly show what dividend withholding tax loopholes in domestic legislation are still clear and present.
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