Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics

17 Pages Posted: 23 Jul 2017

See all articles by Farok J. Contractor

Farok J. Contractor

Rutgers, The State University of New Jersey

Date Written: September 1, 2016

Abstract

This article outlines seven tax-avoidance techniques used by multinational corporations (MNCs) and the government policies that enable them, followed by a discussion of ethics and corporate responsibility. The tax-avoidance phenomenon, amounting to hundreds of billions each year, affects global operations, supply chains, and location decisions—placing this issue at the heart of global strategy. There is no world government or supranational tax authority. A world fragmented into more than 190 nations (each seeking local optimization of revenues) is in tension with MNCs that look on the entire world as their blank canvas (global optimization) and fall prey to the temptation of using the seven tax-avoidance techniques outlined here.

Keywords: MNC, tax avoidance

Suggested Citation

Contractor, Farok J., Tax Avoidance by Multinational Companies: Methods, Policies, and Ethics (September 1, 2016). Rutgers Business Review, Vol. 1, No. 1, 2016. Available at SSRN: https://ssrn.com/abstract=3005385

Farok J. Contractor (Contact Author)

Rutgers, The State University of New Jersey ( email )

311 North 5th Street
New Brunswick, NJ 08854
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1,345
Abstract Views
3,534
rank
14,138
PlumX Metrics