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Understanding Regulatory Arbitrage

I remember when I first heard "regulatory arbitrage." I knew about arbitrage but I never thought that this expression can be also used in compliance.


Taking advantage of the different taxation rules and regulations of various countries sounded like an abstract idea, but in reality, it is a commonly used loophole. Even today, online businesses can easily shift their operation abroad, in order to reduce their tax burdens, often leaving larger (and more stable) economies struggling with how to maintain fairness.


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