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Many multinationals use transfer pricing (the pricing of goods and services sold between affiliates of a parent company) to minimize their global tax rate.
French tax inspectors searched Google's Paris offices in June 2011 as it opened a probe into how the company implements transfer pricing between its different units – a strategy many multinationals use to shift revenue and tax liability between countries.
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He also cites Turkey's location in respect to Europe and the MENA region, and its relaxed visa rules, adding that "many multinationals currently use Istanbul as a base for the surrounding regions, and we expect many startups to do the same".
Many of the US's largest multinationals use similar subsidiaries.
"Rather than paying their fair share, many multinational corporations use accounting tricks to pretend for tax purposes that a substantial portion of their profits are generated in offshore tax havens, countries with minimal or no taxes where a company's presence may be as little as a mailbox," the authors wrote in the report's summary.
Scores of multinationals use Lagos as their base.
At present, many multinationals avoid local taxes by using a complex network of companies to shift profits elsewhere.
But in practice many multinationals and their homosexual employees will have to make difficult choices.
Many multinationals were harshly criticized in the 1990s for using suppliers that maintained sweatshop conditions.
There were also more attacks on big companies' use of the international tax system, with many multinationals seeing huge reductions in their tax bills by transferring profits to countries with a more favourable tax rate.
The stand-alone business models that many multinational companies have been using in China are coming under pressure from rising costs particularly those of labor and raw materials as well as the yuan's appreciation.
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