The taxation policies of Multinational Companies (MNCs) have
become an attractive matter for governments, NGOs, and media in
recent years. The tendency of MNCs to use low tax jurisdiction in
order to reduce their payable taxes has forced the international
regulatory bodies to take preventive measures. The complex
organizational structure of the MNCs enables them to evade taxes by
relying on complex and artificial methods. In this way, parent
companies may increase their profits by using their subsidiaries
for taxation deferral tactics. The base Erosion and Profit Shifting
(BEPS) Action Plan of OECD is a strong indicator that lawmakers in
the different countries are getting more conscious about the
detrimental impacts of legal, but unfair tax avoidance activities
of the MNCs on the world economy (OECD, 2021b). The competition
over getting a greater slice from the global tax pie encourages
some countries, which are known as tax heavens, to reduce the tax
obligations of
