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Brief Information: Big businesses employ various techniques to lower their tax overhead and maximize profitability. Some of the most popular techniques include: Tax Havens: Establishing

Brief Information:
Big businesses employ various techniques to lower their tax overhead and maximize profitability. Some of the most popular techniques include:
Tax Havens: Establishing subsidiaries or holding companies in jurisdictions with favorable tax laws to reduce tax liabilities.
Transfer Pricing: Manipulating prices of goods or services transferred between related entities to shift profits to low-tax jurisdictions.
Tax Credits and Incentives: Taking advantage of tax credits, deductions, and incentives offered by governments to reduce taxable income.
Offshore Banking: Holding funds in offshore accounts to avoid or defer taxation on investment income.
Tax Loss Harvesting: Selling assets at a loss to offset capital gains and reduce tax obligations.
Corporate Restructuring: Restructuring business operations or legal entities to optimize tax efficiency.
Objective Type Question:
Which technique involves manipulating prices of goods or services transferred between related entities to lower tax liabilities?
A) Offshore Banking
B) Tax Loss Harvesting
C) Transfer Pricing
D) Corporate Restructuring
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