Question

Historically, which one of the following statements is most correct about the tax burden of U.S. technology giants such as Google?

		Tthey have been paying very high taxes because they have been very profitable
		They have been paying very low taxes simply by using transfer pricing
		They have been paying very low taxes because they have been incurring losses overseas
		They have been paying very low taxes by using transfer pricing and channeling income through foreign subsidiaries in low income tax countries
		hey have been paying very low taxes by setting up subsidiaries in low income tax countries

Answer 1

They have been paying very low taxes by using transfer pricing and channeling income through foreign subsidiaries in low income tax countries.

As there were no special laws to govern it. They were using it for their own advantage.

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