Dominika Langenmayr, 08 September 2013

The realisation that multinational enterprises like Starbucks, Google and Amazon pay few taxes has sparked heated public debate, especially in the UK. This column questions whether widespread low tax payments are a sign of tax avoidance. Perhaps an alternative explanation is that multinational enterprises are able to shift profits abroad even if they fully comply with the law due to features inherent in the fundamentals of generic tax codes and the nature of large international firms.