International tax planning

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- How exactly does international tax planning assist a US citizen avoid taxes?

- For a US multi-location manufacturer, how might they use transfer pricing to reduce their tax liability. Assume a firms steel mill, makes steel which goes to its machining operation, and the machining operation ships parts to an assembly plant. Each of the 3 operations is in different countries with different tax rates.

- Discuss what you feel are the legal, ethical and fairness issues involved in doing this type of international tax planning.

Reference no: EM1362567

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