Companies try to accumulate more profits in a high-tax country in order to help governments increase tax revenue.

Name: Companies try to accumulate more profits in a high-tax country in order to help governments increase tax revenue.
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Question

Quizplus · Accepted Answer

Companies may try to minimize their tax liability in high-tax countries by engaging in tax planning strategies such as relocating their profits to low-tax jurisdictions. This reduces the amount of tax revenue that governments can collect, rather than increasing it.

Companies Try to Accumulate More Profits in a High-Tax Country