Methods Used by Organizations to Reduce Tax Liability (Essay Sample)

Methods Used by Organizations to Reduce Tax Liability
Student’s Name
University
Course
Professor’s Name
Date
Methods Used by Organizations to Reduce Tax Liability
Economic growth is considerably dependent on the tax revenues generated from corporations annually. Taxes are generally regarded as liabilities by companies, despite their immense contribution to the economy. Therefore, organizations have historically devised mechanisms of avoiding taxes legally and illegally. Fundamentally, the lawful approaches have received global attention due, in part, to the growing appreciation of corporate ethical obligations. Subsequently, governments have enacted various provisions to incentivize tax payment while promoting commercial activities and entrepreneurship. Businesses have utilized such loopholes to reduce their tax burden and increase their earnings. Organizations reduce the taxes they have to pay by creating foreign subsidiaries and taking advantage of tax