The by profiting. Taxes impede them from profiting, which

The main reason that tech multinationals such as Facebook, Apple, and Google practice tax avoidance schemes is because paying taxes is considered disruptive. Taxes are disruptive for all businesses and markets because they prevent a firm from being able to achieve productive efficiency (Slemrod, 1990).  All of the tech multinationals mentioned are PLCs and as such one of their biggest aims is keeping shareholders happy by profiting.  Taxes impede them from profiting, which provides an incentive to corporations to minimise their tax paid.  Although taxes are disruptive, they are a necessary evil, as they provide a government with the finances to develop an economy.  Thus tax competition among nations is justified since its a method governments can use to increase their tax revenue and possibly as a gauge of how many multinationals pay taxes in your country; with relatively high levels of corporate tax translating to satisfactory levels of tax income. The main reason that tech multinationals such as Facebook, Apple, and Google practice tax avoidance schemes is because paying taxes is considered disruptive. Taxes are disruptive for all businesses and markets because they prevent a firm from being able to achieve productive efficiency (Slemrod, 1990).  All of the tech multinationals mentioned are PLCs and as such one of their biggest aims is keeping shareholders happy by profiting.  Taxes impede them from profiting, which provides an incentive to corporations to minimise their tax paid.  Although taxes are disruptive, they are a necessary evil, as they provide a government with the finances to develop an economy.  Thus tax competition among nations is justified since its a method governments can use to increase their tax revenue and possibly as a gauge of how many multinationals pay taxes in your country; with relatively high levels of corporate tax translating to satisfactory levels of tax income.