Multilateral netting is used majorly to _____.

Question

Quizplus · Accepted Answer

Multilateral netting is primarily used to reduce the number of transactions and payments that need to be made between subsidiaries of a corporation. This helps to simplify and streamline the payment process, reduce transaction costs, and minimize operational risks. It is not directly related to availing tax credits or establishing tax treaties, although it can indirectly help to optimize tax planning and reduce tax liabilities. It is also not related to establishing subsidiaries, which is a separate decision made based on business needs and objectives.

Multilateral Netting Is Used Majorly to _____