Treasurers 20 years ago were told its financial investments were an untapped area where tax considerations were useful.
Twenty years ago companies were exploring ways to be more tax efficient in an age when loopholes and the like were seemingly disappearing (only to creep back over the ensuing years). In “Cash-Tax Investment Links” in the January 23, 1995 issue of International Treasurer, treasurers were told they could just being more tax aware can “add to the bottom line.”
“One place to start is with the company’s net capital tax position… If you have capital losses, the income you make on capital gains can be tax free. This is an important consideration, because some lucrative arbitrage opportunities can only be used by companies with the ability to offset capital gains.”
Other ideas were to seek out loopholes, although the story acknowledged at the time that were “dwindling in the US and elsewhere.” Ironically, tax loopholes have only grown in the last two decades, with catch-all provisions like the “domestic manufacturing deduction,” which critics say makes everyone a manufacturer. These have mixed with other industry-specific tax breaks and other workarounds to make the US code pretty dense.