I think below is what you are looking for, found it somewhere don't remember where, but made a copy of it for my interest 🙂
A company or business in a high tax jurisdiction sells €500,000 of goods or services to France every year. Let say that cost of goods and operating expenses are €300,000. Corporation in high tax jurisdiction earns €200,000 on its sales before taxes. Taxes will average say €80,000 thus reducing net profits to €120,000. Let say that company from high tax jurisdiction establishes an offshore company to act as intermediary. The onshore company sells its goods and services to the offshore company for let say $320,000. This company immediately sells the goods and services to the German client for €500.000. The offshore company earns €180,000. Offshore corporation pays no taxes so €180,000 is the net income. The exporting company in high tax jurisdiction shows minimal profit. (€20,000) the €180,000 in tax-free income can be deposited in a bank account or other investment instrument according to the wishes of the onshore company.
Thank you for sharing jpay.... this is really helpful.
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