Abstract: A method and system receives one or more target distribution amounts corresponding to currency totals for one or more foreign entities to distribute to one or more domestic entities in one or more years, the foreign entities being direct or indirect subsidiaries of the one or more domestic entities, then it receives entity data pertaining to tax relevant attributes for the one or more domestic and foreign entities over the one or more years, and receives distribution constraints for each foreign entity, the distribution constraints including a minimum distribution amount and a maximum distribution amount for each entity in each year. The method and system creates one or more distribution scenarios including corresponding tax costs based on the entity data and the distribution constraints and identifies a distribution scenario from the one or more distribution scenarios having the lowest tax and meeting the one or more target distribution amounts.

Abstract: A system for analyzing and optimizing allocation of factors among different business entities. The analysis, or optimization, can be targeted to a specific business financials measurement, or metric. Many different types of factors can be considered regardless of their initial definition, description or form. For example, along with revenues, profit, inventory size, etc., human characteristics such as incentive and performance can be measured and optimized. A preferred embodiment of the invention concerns analyzing factor allocation to reduce overall taxes for a company with subsidiaries in regions with different tax laws. The system includes consideration of local, state, federal and international taxes, transfer pricing, tax credit limitations, inter-state allocations in unitary and non unitary environments, carry-overs, and others. The system preferably uses a versatile matching engine, described herein, to automate the analysis and optimization.