Global tax evasion fight: Why MNCs, HNIs still outsmart regulations

Multinationals and high-net-worth individuals (HNIs) dodge taxes in a variety of ways. The most common way for multinationals is through the transfer pricing mechanism

The menace of tax evasion and avoidance by multinational corporations and high-net-worth individuals — by relocating to low-tax jurisdictions and tax havens — has been a matter of serious global concern. This is particularly so in developing countries, as they require the much-needed resources to augment infrastructure and human development, combat environmental challenges, and control deficits and debt for macro-stability, especially in the aftermath of the economic challenges created by the pandemic and international hostilities, which have disrupted global supply chains and adversely impacted production costs and energy prices.

 

In this context, the recent report on global tax evasion by