Profit shifting

Tax.

Tax payer action that reduces the taxable profit in a jurisdiction by shifting it to a jurisdiction where it will be taxed at a lower rate or not taxed at all.

This is generally seen by tax authorities as potentially abusive, even if legal.

See also

• Base erosion and profit shifting
• Global minimum corporate tax rate
• POEM
• Tax avoidance
• Tax evasion
• Taxable profits
• Transfer pricing