TREATY SHOPPING IN TAX STRATEGIES OF COMPANIES OPERATING ON THE INTERNATIONAL MARKET

Considerations undertaken in this article refer to behaviours of companies that function on the international market and that wish to address fiscal burden imposed on their passive income. Much attention is paid to formulation of a tax strategy and using this strategy to implement treaty shopping. Therefore, the article aims at presenting treaty shopping and possibilities for of its utilisation in any tax strategy, particularly taking into account threats and opportunities that have to be faced while realising financial objectives of any entity that functions in the international context. The article contents cover discussions in which general remarks that justify employment of a given tax strategy as a tool used to manage taxes help identify a phenomenon of treaty shopping. Moreover, potential-ways of using treaty shopping for corporate finance along with its limitations are demonstrated.