2. Reducing tax bills
• Multinational corporations (MNCs) use
several methods to reduce their tax bills
• Many of these methods are perfectly legal:
• a) they take advantage of loopholes in
existing tax laws
• b) they take advantage of lower rates of
taxation in some countries
3. Registration scams
• Corporations often register their legal
addresses in low-tax jurisdictions to
reduce their tax liabilities
• Such registrations often involve the
creation of fictitious entities, with the
companies conducting no actual
transactions in the place of registration
9. Ugland House
• Ugland House, in the British Cayman
Islands, is the registered legal address of
more than 18,000 companies
• The Cayman Islands are a notorious tax
haven, where multinational companies
divert profits to minimise their tax liabilities
11. Delaware
• 1209 North Orange Street, in Wilmington,
Delaware is the legally registered office of
more than 200,000 corporations, including
Ford, Coca Cola, General Motors and
Kentucky Fried Chicken
• These companies all benefit from
Delaware’s business-friendly tax laws,
allowing them to reduce their corporate tax
bills
12. Other tax havens
• British Virgin Islands
• Belize
• Luxembourg
• Monaco
• Switzerland
• Hong Kong
• Mauritius
• Liechtenstein
13. Transfer pricing
A simple guide from the Guardian
http://www.guardian.co.uk/flash/pa
ge/0,,2201916,00.html
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25.
26. Fake loans
• MNC subsidiaries in high-tax jurisdictions
often take out loans from other
subsidiaries
• The interest on these loans can be offset
against profits
• The loans can often be suspiciously large,
allowing subsidiaries to reduce declared
profits and thus minimise their tax liabilities
