 However, if applied aggressively, this can be a risky strategy depending on the jurisdiction – if the business fails, the owners' ability to benefit from the nominal write-offs and losses accrued in earlier years might be limited or non-existent.Taxes on profits derived from foreign investments may also be deferred via the retention and reinvestment of corporate earnings in foreign lower-tax countries.The advantages of this kind of tax deferral can be attributed to two partially interdependent effects, the tax rate effect and the interest effect