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Corporate Restructuring and Tax Arbitrage Strategies at International Level

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  • Anda Simona RĂDULESCU

    (The Bucharest University of Economic Studies)

  • Cristian DÎRVĂ

    (The Bucharest University of Economic Studies)

Abstract

From the analysis of the specialized literature in the fiscal field, I have noticed that there are conflicting opinions about the role of fiscal arbitrage in the efficiency of companies and the economic growth in the process of company restructuring. The main objective of any tax system is to collect revenues to the state budget. If this function is affected by international tax arbitrage, it can either reduce budget expenditures and thus lead to social and political difficulties, or to further increase tax pressure to obtain additional revenue. However, fiscal arbitrage opportunities will continue to exist, at least until international tax harmonization is reached. The questions I have been trying to find an answer through this paper are: Are tax strategies important in a company's management decisions?, Are there indeed real benefits through international tax arbitrage?, If so, why do not more companies appeal to it?

Suggested Citation

  • Anda Simona RĂDULESCU & Cristian DÎRVĂ, 2018. "Corporate Restructuring and Tax Arbitrage Strategies at International Level," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(3), pages 264-273, July.
    • Handle: RePEc:rom:rmcimn:v:19:y:2018:i:3:p:264-273
    DOI: 10.24818/RMCI.2018.3.264
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    References listed on IDEAS

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    1. Mihir A. Desai, 2003. "The Divergence between Book Income and Tax Income," NBER Chapters, in: Tax Policy and the Economy, Volume 17, pages 169-208, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    restructuring; risk management; strategies; tax arbitrage; fiscal yield.;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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