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Commerce
Income Tax And Corporate Tax
Difficulty: Medium
Usually there is a tendency among MNCs to adjust their international transactions in such a way that maximum profit arises in that country where the rate of tax is lowest and minimum profit arises in that country where the rate of tax is highest. Thus, there may be chances that MNC escape tax in those countries where the tax rate is more by adjusting their international transaction and declaring lesser profits in such country. This is called as the issue of:
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