Conduit Company Law and Legal Definition
Conduit Company is a company which is set up in connection with a tax avoidance scheme. Whereby income is paid by a company to the conduit and then redistributed by that company to its shareholders as dividends, interest, royalties, etc.
In such companies, arrangement is made to avoid paying tax twice on an income where the country in which a parent firm is located. It may not have a taxation treaty with the state in which its subsidiary is located. In this method, a holding company is formed in a country which has such treaties with both countries, to serve as a pipeline for income from the subsidiary to the parent.
Legal Definition list
Related Legal Terms
- Accompanying Relative [Immigration]
- Accompanying Spouse and Dependents
- Accompanying the Armed Forces outside the United States
- Accompanying the Federal Government Outside the United States
- Accompanying Visa
- Affiliate and Associated Company
- Affiliated Company (Gaming Law)
- Armored Car Company
- Bank Holding Company
- Bank Service Company
