imported>Doug Williamson |
imported>Doug Williamson |
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| ''Law - international law - contract''.
| | An international holding company located in a country with an extensive double tax treaty network and minimal foreign exchange and overseas investment controls. |
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| Governing law means the system of law to be applied to determine a dispute under a contract with non-domestic elements, usually specified by a ''governing law clause'' in the contract.
| | Historically, the tax advantages of mixer companies included blending income streams from different tax jurisdictions, minimising the wastage of overseas tax credits, and so minimising the total tax liabilities of the group of companies. |
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| In the absence of a governing law clause, the applicable system of law is determined by convention, regulation or general law.
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| :<span style="color:#4B0082">'''''LIBOR transition - USD markets - next steps - check the governing law'''''</span>
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| :"Check the Governing Law of your contracts – for example fallbacks may differ depending on the governing law of your contract (e.g. English or New York) as legislative solutions differ by jurisdiction.
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| :Do not assume that all USD contracts work in the same way."
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| :''ACT blog - Sarah Boyce - Associate Director, Policy & Technical - June 2022.''
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| :<span style="color:#4B0082">'''''Cross-border pooling - importance of differing legal systems'''''</span>
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| :"The governing law for the intra-group cash pooling agreements is often English law for cross-border pooling.
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| :Alternatively the jurisdiction of the parent entity will be stipulated as applicable.
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| :For a Zero Balancing Agreement or a Notional Pooling Agreement, the bank will in many cases provide for a standardised agreement, with the bank’s domicile providing the legal jurisdiction.
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| :Treasurers should make themselves aware of the implications of using differing jurisdictions."
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| :''Legal implications of cash pooling structures - the Treasurer's Wiki.''
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| Contracts and other relationships without foreign elements will generally be governed by domestic law.
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| == See also == | | == See also == |
| * [[Capacity]] | | * [[Foreign tax credit]] |
| * [[Contract]]
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| * [[Court]]
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| * [[Jurisdiction]]
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| * [[Legal implications of cash pooling structures]]
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| * [[Notional pooling]]
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| * [[Private international law]]
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| * [[Proper law]]
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| * [[Regime]]
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| * [[Repatriated]]
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| * [[Resident]]
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| * [[State]]
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| * [[State immunity]]
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| * [[Zero balancing]]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:The_business_context]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]]
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| [[Category:Liquidity_management]]
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An international holding company located in a country with an extensive double tax treaty network and minimal foreign exchange and overseas investment controls.
Historically, the tax advantages of mixer companies included blending income streams from different tax jurisdictions, minimising the wastage of overseas tax credits, and so minimising the total tax liabilities of the group of companies.
See also
