Corporate tax avoidance by multinational firms

Briefing 23-09-2013

The tax reduction methods used by multinational companies have been well known for decades. They include transfer pricing, the use of lower-tax jurisdictions, over-charging entities in higher-tax countries to reduce taxable profit and (legally) completing a transaction in a lower-tax country, different to the country which the business relates to. The problem is relatively clear and law-makers want a situation where businesses not only operate within the letter but also the spirit of the law.