CASE: FINANCIAL BACK TO BACK You are the managing director of start up multinational company in the Philippines. A young financial analyst you hired presented you with a tax arbitrage scheme that can lower your company's effective tax rate. SEE APPENDIX I The scheme looks workable However, you know that the Philippine BIR, for obvious reasons, has openly condemned the practice. Nevertheless, your financial analyst said that all other multinational companies in the Philippines are using this transaction. Further, your company's bank has agreed to finance this deal with you Will you go through with this tax arbitrage? APPENDIX