Jurisdictional Arbitrage
/ˌdʒʊərɪsdɪkʃəˈnæl ˈɑːrbɪtrɑːʒ/
Definitions
- (n.) The practice of exploiting differences between legal systems to gain a regulatory, tax, or legal advantage.
Corporations engage in jurisdictional arbitrage to minimize tax liabilities by incorporating in favorable countries.
Forms
- jurisdictional arbitrage
Related terms
See also
Commentary
Jurisdictional arbitrage often involves strategic selection of legal environments to benefit from favorable laws or regulations; drafting should consider potential cross-border legal implications.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.