International Tax Law and Multinational Enterprises

Net income for corporate income tax purposes is calculated by subtracting deductible expenses from gross income.

Some examples of deductible expenses for corporate income tax purposes include salaries of employees, production costs, rent, interest, royalties, and depreciation of capital.

Net income = Revenue - Deductible expenses

<p>Engaging in tax avoidance techniques refers to using legal strategies to minimize the amount of taxes paid by a corporation.</p> Signup and view all the answers

<p>One example of tax avoidance mentioned in the text is declaring low profit margins for retail branches and high profit margins for branches located in low tax jurisdictions.</p> Signup and view all the answers

<p>Inditex has saved at least €585 million in taxes during the period 2011-2014.</p> Signup and view all the answers

<p>Inditex's techniques are legal but there are concerns about whether the company pays taxes where its real economic activity takes place.</p> Signup and view all the answers

<p>Net income = Revenue - Deductible expenses.</p> Signup and view all the answers

<p>Salaries of employees, production costs, rent, interest, royalties, depreciation of capital.</p> Signup and view all the answers

<p>Net income is the amount of revenue (gross income) minus deductible expenses.</p> Signup and view all the answers