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Firms artificially set up foreign subsidiaries to launder profits.
The practice involves using losses from subsidiaries to reduce taxes.
And this excludes cash held abroad by their foreign subsidiaries to avoid taxes.
It also bans banks from using subsidiaries to provide the insurance.
But some quietly set up overseas subsidiaries to buy their own products at artificially low prices.
They are all subsidiaries to a bigger problem — the Kashmir issue.
Dividends paid by subsidiaries to a parent company in the Netherlands are exempted under certain conditions.
That will help the insurance subsidiaries to settle existing transactions in their securities lending business.
A.I.G. has struggled of late to sell off subsidiaries to repay the Federal Reserve Bank of New York.
Other companies are taking smaller steps, like using foreign subsidiaries to circumvent punitive borrowing costs at home.
Until 2008, foreign banks were permitted to transfer money for Iran through their American subsidiaries to separate offshore institutions.
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