In recent years, multinational corporations $($MNCs$)$ have faced increasing scrutiny from governments worldwide regarding their tax practices. This case study focuses on the challenges posed by the Australian government's crackdown on large corporations exploiting tax disparities in cross$-$border operations. You will explore strategic, operational, and commercial decisions made by MNCs in response to these regulatory changes.

The Australian government has implemented stringent measures to combat tax avoidance by MNCs$.$ Many such corporations exploit discrepancies in tax regulations among various nations, allowing them to pay less tax by shifting profits from high$-$tax jurisdictions to 'tax havens.$\text{'}$

Strategies like using transfer pricing to reduce taxes have come under particular scrutiny.

Consequently, there is a proposal to shift the taxation approach for corporations from the individual legal entity level to a consolidated group level.

Discuss the following issues in your presentation:

Commercial Considerations: How do changes in taxation policies impact investment decisions, business relationships, and market dynamics for MNCs$?$