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