October 2017
There isn’t a person alive, or an organization in existence, that doesn’t seek to avoid or minimize its tax liability. From individuals and small businesses to multinational corporations (MNCs), tax avoidance is a primary strategy to keep more money in your pocket, and out of the government’s. These days, businesses and individuals can employ a litany of tax avoidance and tax mitigation strategies. One in particular that’s garnered favor through the years with MNCs engaged in global commerce is profit shifting.
Essentially, profit shifting is a way to shift profits from jurisdictions that have high taxes (such as the U.S. and many Western European countries) to jurisdictions that have low or no taxes (often called tax havens).
