Question:

Why do some of the largest businesses in the world avoid paying taxes, and how could new accounting rules potentially mitigate this practice?

A$)$ Due to exploiting tax loopholes and utilizing complex offshore tax structures, and new accounting rules may increase transparency and disclosure requirements, making tax avoidance strategies more difficult to implement.

B$)$ Because they prioritize maximizing profits and shareholder returns, and new accounting rules may incentivize ethical tax practices and increase penalties for non$-$compliance.

C$)$ As a result of lobbying efforts to influence tax legislation in their favor, and new accounting rules may provide clearer guidelines for tax reporting and enforcement, reducing opportunities for tax avoidance.

D$)$ Because they face intense competition and global market pressures, and new accounting rules may introduce stricter regulations and oversight, discouraging aggressive tax planning strategies.