Define Tax Avoidance Agreement

LANDED COST – The cost of importing goods, i.e. the sum of the costs of the goods concerned, the amount of tariffs levied on those goods, and the cost of unloading those goods. LAST IN, FIRST OUT — See: LIFO LEASE — In general, a lease is a real estate or private ownership agreement under which the owner of the property gives another person the right to own, use and enjoy the property for a certain period of time in exchange for regular payments. LEASEBACK — See: Sale and leasing back LEGAL ENTITY — As a general rule, private equity companies, limited partnerships and limited liability companies are considered tax-separate from those of their shareholders. Conversely, for tax reasons, a partnership is often not considered a separate corporation because its profits are taxed in the hands of each partner. What constitutes a corporation for tax purposes may correspond to what constitutes a corporation for common law purposes. LEGAL RESERVE — Under the civil law of some countries, companies are required to maintain a legal reserve for any needs that may arise during the transaction. Tax legislation does not allow such a reservation to be deducted. LETTER-BOX COMPANY — A paper, shell or money box company, a company that has compiled only with the necessary basis for organizing and registering in a given country. The actual commercial activities are carried out in another country. LETTER RULING — See: Prejudicial Judgment LEVEL PLAYING FIELD — This term means reducing the differences in taxation of international mobile companies or transactions through tax policies that allow countries to compete fairly with non-tax factors. LEVERAGING — See Gearing LIBOR — London`s interbank offer rate is the rate at which London`s financial banks lend each other money. LICENSE DUTIES (OR FEE) – Annual customs duties payable for the privilege of carrying out a particular trade.

LICENSING — Licensing is an agreement by which a licensee transfers the right to use its technology and/or know-how to manufacture or manufacture a product in the licensee`s country. Royalties are generally paid for the right to use technology or know-how. READ MORE — A property tax that makes it insured for the payment of a debt, judgment, mortgage or tax. LIFE INTEREST – Assets can be given to a person for lifetime use or performance, provided the asset is transferred to another beneficiary based on his or her life and privacy. LIFE TENANCY – According to common law, an interest in the property, for which the individual beneficiary is entitled to income from a trust or a transaction declaration until his death. LIFO — a method (“last in, first out”) for the valuation of stock or stock in the trade in which the last goods or materials purchased are considered to be the first to be sold. LIMITATION ON BENEFITS PROVISION — Tax provisions limiting contractual purchase opportunities by limiting contractual benefits to individuals who complete one of the many tests listed that may require minimum qualifications, for example. B local property. LIMITATIONEN, STATUTE OF — See: Statutes are the OECD model, the UN model, the American model and the Andean model are few and fore. Of these, the first three are the most important and most commonly used models.

However, a final agreement could be a combination of different models. In 2008, Private Eye reported that Tesco was using offshore holdings in Luxembourg and partnership agreements to reduce its tax debt by $50 million a year. [25] Another system, previously identified by Private Eye, included the deposit of $1 billion in a Swiss partnership and the subsequent loan of that money to Tesco subsidiaries abroad, so that profits can be transferred indirectly through interest payments.