On October 14, 1993, Portugal's Ministry of Finance announced that it would scrap the 20% withholding tax imposed on the interest payments due foreigners holding government bonds. At present, foreigners whose governments have a double-taxation treaty with Portugal wait up to two years to claim back a portion of the tax. What might have been Portugal's motivations for scrapping the tax? What are the likely consequences of eliminating the withholding tax?
Answer to relevant QuestionsA European company issues common shares that pay taxable dividends and bearer shares that pay an identical dividend but offer an opportunity to evade taxes: Bearer shares come with a large supply of coupons that can be ...The following questions relate to note issuance facilities.a. What factors account for the growth of note issuance facilities?b. In what sense is the NIF part of the process of securitization?c. Why is the NIF described as a ...What are some of the advantages and disadvantages of having highly leveraged foreign subsidiaries?1. What are the pros and cons of Deutsche Bank listing on the NYSE as a global share instead of an ADR?2. Are these pros and cons of a GRS issue likely to change over time? In which direction?3. What changes would increase ...As noted in the chapter, from 1949 to 1990, the Japanese market rose 25,000%.a. Given these returns, does it make sense for Japanese investors to diversify internationally?b. What arguments would you use to persuade a ...
Post your question