Why do multinational corporations use tax avoidance strategies
even when it might be immoral? Explain at...
Why do multinational corporations use tax avoidance strategies
even when it might be immoral? Explain at least three of the most
widely used strategies of tax management by MNE.
1. Can you think of a reason why multinational corporations
might be riskier than companies that operate on the domestic market
only. Explain briefly. (Hint: there are at least two good reasons,
but you only need to come up with one)
2. Come up with a reason why, by going multinational, most
corporations can reduce their total business risk. Can you think of
a food or agricultural-sector company whose international
operations clearly have such an effect?
Describe the ways in which multinational corporations are able
to reduce their global exposure to tax liabilities. Be sure to
identify the primary tools used and the potential financial
benefits from successful tax management programs.
By booking profits to subsidiaries registered in tax havens,
multinational corporations are able to avoid an estimated $90
billion in federal income taxes each year. In its 2013 regulatory
filing, Microsoft noted it has now maintained $92.9 billion in
offshore accounts which negated $29.6 billion in taxes. That
compares to $76.4 billion from the previous year, worth a negated
tax bill of $24.4 billion. Microsoft is not alone in stockpiling
cash overseas. Apple had $137.7 billion in offshore accounts.
Assignment:...