Tax Avoidance Trends Among Multinational Enterprises: An Examination of Intellectual Property Transaction and Corporate Income Tax Avoidance

It is no secret that large multinational enterprises (“MNEs”), a large percentage of which are Delaware corporate entities, have long been on the cutting edge of clever ways to minimize, if not avoid, tax liability. Information and misinformation abound with respect to how the world’s most sophisticated tax strategists plan to minimize or eliminate their tax liability. In a blog essay written for the Delaware Journal of Corporate Law, DJCL staff editor Brian King explores tax avoidance strategies employed by MNEs, particularly in the technology sector. By utilizing creative intellectual property licensing agreements and oversees affiliates, large MNEs are able to largely avoid taxation. The essay describes what is being done about these measures and assesses their likelihood of success.


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