MNCs can often decrease their tax liability through

Question

Quizplus · Accepted Answer

MNCs can manipulate transfer pricing (pricing goods and services transferred between different subsidiaries belonging to the same parent company) in order to shift profits to low tax jurisdictions and reduce their overall tax liability. This is a common tax planning strategy used by MNCs. The other options may also have an impact on tax liability, but they are not as significant as transfer pricing.

MNCs Can Often Decrease Their Tax Liability Through