Tax Relief Mechanisms and the Least Taxed Path for Circulating Income within a Multinational Enterprise

When minimizing their overall tax liabilities, multinational enterprises exploit the various provisions of interjurisdictional tax arrangements, not hesitating to circulate flows indirectly and through multiple financial vehicles. This paper proposes to nest modelling such strategies into the graph theory and network analysis. Such an exercise first calls for an improved taxonomy of multiple tax relief mechanisms. Ultimately, it proves to be useful for investigating efficient design of interjurisdictional tax arrangements