Cause and Countermeasures on Tax Avoidance: From a Comparative View

Abstract

With the internationalized establishment of multinational enterprises, many of them are trying to win more profits and save more costs for themselves for better development. To eliminate the adverse effects of tax avoidance and maintain international business order, relevant regulations and agreements should be proposed to prevent MNEs from excessively transferring their profits and evading the tax they should have paid. Case study and comparative analytical method have been used in this paper to look at whether or not the tax avoidance of MNEs is problematic for host states and propose appropriate solutions for different entities. From the research, both similarities and differences can be concluded from different MNEs’ methods of committing tax avoidance. Also, there is the possibility that relevant entities take corresponding measures within their respective region or scope to prevent adverse effects carried out by tax avoidance.