Tivot Sandwich: Difference between revisions

In the process, two classes of tax havens (more accurately known as offshore financial centres or OFCs) emerged: sink OFCs and conduit OFCs. Sink OFCs were the final destinations for shifted profits because of their highly opaque business practices and virtually non-existent tax rates. Countries such as [[Blueacia]], [[Frorkstolm]] and the [[NecratiesNECRATIES Islands]] fulfilled this function. However, because the modern financial system was becoming even more complicated and policymakers were wary of these tax havens, many of them struggled to sign the treaties needed to shift corporate tax liabilities easily.

Thus, Tivot positioned itself as a conduit OFC between onshore tax jurisdictions and sink OFCs. Due to its international reputation and the careful work of building its institutional mechanisms starting with Chief Executive Eliri Dzrevili, Tivot was able to gain the trust needed to enter into corporate tax liability treaties with both onshore and offshore jurisdictions. Tivot developed a highly sophisticated structure that involved taxation, company and IP law to develop the base erosion and profit shifting (BEPS) corporate tax tools that came to be known as the Tivot Sandwich.