A fundamental goal of this article is to present the role of tax heavens in the management of corporate finance. Due to the presence of foreign direct investments in tax heavens and the fact that MNEs establish their foreign subsidiaries or even parent companies there, tax heavens have become flourishing offshore financial centres, which play a significant role in the global financial system. Establishing related parties in the offshore financial centres brings MNEs handsome benefits such as: reducing tax burdens, enhancing cash flows and a relatively high efficiency of risk management. Moreover, subsidiaries in tax heavens enable to implement such instruments such as: treaty shopping, intercompany loans and cash pooling, bearer shares and bonds, transfer pricing.

Keywords: tax heavens, corporate finance, offshore companies, offshore financial centers, foreign direct investments
JEL: F23, F36, G15, G30, H21, H26

 Paweł Folfas - The Presence of Tax Heavens in Corporate Finance of MNEs: Reasons, Forms, Opportunities and Threats - plik pdf; (264 KB)