Nowadays, many large corporations operate across boarders and exploit taxation differences between different countries. Many scholars and regulators claim that some of the most profitable global companies pay too little tax, because these companies can shift profits from high-tax countries to 'tax havens' through arrangements such as transfer pricing. Therefore, it has been proposed that corporations should be taxed on the consolidated group level, instead of the legal entity level. Required Discuss your assessment of the proposal. Specifically, you are expected to: Illustrate how global companies can shift profits across boarders through transfer pricing; Discuss one real world example where a global company seeks tax avoidance through foreign subsidiaries; Explain why the proposal might help with discouraging this type of tax avoidance; and Conjecture some difficulties in implementing this proposal