Locating Holding Companies
Locating a holding company in a tax haven can be used to bring together investors from various countries who are investing in businesses that are in turn operating in numerous countries. This creates a single point through which all business operations and investors can be co-ordinated without the imposition of significant compliance costs or additional taxes.
PepsiCo, is one of 500 multinational companies that have their holding company based in Denmark (which is a tax haven for holding companies). PepsiCo (headquartered in New York, US) has sales of US$63 billion, 269,000 employees, and operates in 195 countries. The company has a market capitalisation of US$160 billion and over 200,000 shareholders (including employees under the employee share plan).
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2