"Running header: SUMSUNG TAX SHELTER 1 SUMSUNG Tax ShelterName Institution SUMSUNG TAX SHELTER 2Tax ShelterA tax shelter is a legal and appropriate way of avoiding tax. Corporations have devisedsystems through which the government will consider lowering taxes in respective taxes(Slemrod, & Gillitzer, 2014). Samsung has not been left out in devising strategies through whichtaxes will be reduced. Samsung is a multinational electronic company based in Korea and otherbranches in different parts of the word. Engagement in forming business through importationsand exportations and consolidating finance from all foreign branches exposes Samsung to anincrease in tax. For the period passed from 2010 to date, Samsung has consistently managed taxregimes through local authorities and foreign nations (Michell, 2010).In Korea, the maximum corporate tax is 22% (24.2%) including local taxes. In 2012 forexample, Samsung had 20.75 trillion in profit and managed to negotiate a corporate tax of 3.35trillion (Samsung audited financial report). This flow has been maintained to the last financialyear wherein 2015; the company registered a profit attributable to the parent of 20,403,517 net atax of 3,960,181.Assessment of effective tax rate indicates that Samsung has an effective tax rate of 16.1%this is the amount disclosed through accounting calculation, but this is not the actual amount paidby the group as indicated by PWC audited books account. In reality, Samsung effective tax rateis 67%, and tax exemption from accounting calculation are about 2 trillion which is much higherthan the local corporate taxes charged taxable to the company. Besides, Samsung enjoys taxbreaks amounting to 3% of it taxable corporate tax. This application culminates to effective taxshelters. SUMSUNG TAX SHELTER 3From the analysis, Samsung, amount of tax avoided and slashed of through tax breaksand the exemption is high sprouting controversies about the tax issues. Samsung has found itselfin media over tax issues where competitors and media argue that Samsung is corrupt over taxesand it is not following the right channels. Competitors should emulate methodologies embracedby Samsung to effectively manage tax shelter and reduce tax burdens (Fishman, 2014). SUMSUNG TAX SHELTER 4ReferencesFishman, S. (2014). Working for yourself: Law & taxes for independent contractors, freelancers& consultantsMichell, T. (2010). Samsung Electronics and the struggle for leadership of the electronicsindustry. Singapore: Wiley.Slemrod, J., & Gillitzer, C. (2014). Tax systems "