Tax Advantage of Equity Swaps

CFA Level III Derivatives
#1

Can anyone explain this to me from the CFA text?

“One prime motivation for initiating equity swaps is to avoid paying high taxes on the full return amount from an equity investment. This advantage is dependent on tax laws remaining favorable, which means that equity swaps carry tax policy risk.”

How would this avoid paying high taxes?

#2

By having to make the counter payment.

#3

So not necesarilly a “benefit”, as owning securities outright would receive the full return, but the swap would receive full return less the counterpayment. The total tax bill is just less for the swap, because the total return is less?