TERMIUM Plus^®

Record 1,  Textual support,  English

Record number: 1, Textual support number: 1 CONT

A company may be set up in connection with a scheme for tax avoidance whereby income is paid by a related company to such a company and redistributed by that company to its shareholders as dividends, interest, royalties, etc. There will normally be a favourable tax situation for the company in question through its being situated in a tax haven, or in a country which has a low rate of company taxation and beneficial tax treaties with other countries. The promoters of the company use the company as a "conduit" for the income which it is desired should be "franked", or taxed at a reduced rate under the avoidance scheme. Such companies are known as "conduit" companies.  1, record 1, English, - conduit%20company

Record number: 1, Textual support number: 1 OBS

Related term: base company.  2, record 1, English, - conduit%20company

Record 1,  Textual support,  French

Record number: 1, Textual support number: 1 OBS

Stratégie de fraude fiscale.  1, record 1, French, - soci%C3%A9t%C3%A9%20de%20canalisation%20des%20b%C3%A9n%C3%A9fices

Record 1,  Textual support,  Spanish