Corporate tax avoidance

Corporate tax avoidance refers to strategies that companies use to minimize their tax liabilities legally. This can include exploiting loopholes in tax laws, using accounting techniques to shift profits to lower-tax jurisdictions, or taking advantage of tax incentives. While tax avoidance is legal and often done within the framework of tax regulations, it can raise ethical concerns, especially if it results in significant tax revenue loss for governments. This practice is different from tax evasion, which is illegal and involves deliberately misrepresenting or concealing information to reduce tax obligations.