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Question: What is Base Company in Taxation?
Answer: Base Company in Taxation is the company situated in a low-tax or non-tax country (i.e. tax haven), which is used to shelter income and reduce taxes in the taxpayer's home country. Base companies carry on certain activities on behalf of related companies in high-tax countries (e.g. management services) or are used to channel certain income, such as dividends, interest, royalties and fees.
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Tax Interview Questions & Answers -
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Question:
What is Base Company in Taxation?
Answer:
Base Company in Taxation is the company situated in a low-tax or non-tax country (i.e. tax haven), which is used to shelter income and reduce taxes in the taxpayer's home country. Base companies carry on certain activities on behalf of related companies in high-tax countries (e.g. management services) or are used to channel certain income, such as dividends, interest, royalties and fees. Source: CoolInterview.com
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