____________ is a Tax avoidance technique whereby multinational subsidiaries are financed primarily by debt from the parent company instead of equity capital.
A)Thin Capitalization
B)Repatriating Profits
C)Transfer Pricing
D)Tax haven

Question

Quizplus · Accepted Answer

Thin Capitalization is a tax avoidance strategy used by multinational companies where they finance their subsidiaries primarily through debt rather than equity. This is done to take advantage of the tax deductibility of interest payments, thereby reducing the subsidiary's taxable income.

____________ Is a Tax Avoidance Technique Whereby Multinational Subsidiaries Are