Tax avoidance vs. tax evasion = Over time, these concepts have become somewhat blurred. Define tax avoidanceDefine tax evasionCompanies like Apple, Starbucks, etc. have enlisted the aid of CPA and law firms to assist them in minimizing their worldwide taxes. Afterwards, it was discovered that such companies had an effective tax rate of 5 - 10% for US tax, well below the 21% tax rate. There are numerous articles detailing what these companies did to achieve such low tax rates. Summarize what one of these companies did to achieve such a low effective federal tax rate. Were such actions legal?If so, why did the Organization for Economic Cooperation and Development (OECD) and various countries propose new tax rules?Please respond to all questions above.

Tax avoidance strategies are legal methods employed by individuals or businesses to reduce their tax…

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Chapter1: Financial Statements And Business Decisions

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Tax avoidance vs. tax evasion = Over time, these concepts have become somewhat blurred.

Define tax avoidance
Define tax evasion
Companies like Apple, Starbucks, etc. have enlisted the aid of CPA and law firms to assist them in minimizing their worldwide taxes. Afterwards, it was discovered that such companies had an effective tax rate of 5 - 10% for US tax, well below the 21% tax rate. There are numerous articles detailing what these companies did to achieve such low tax rates. Summarize what one of these companies did to achieve such a low effective federal tax rate.
Were such actions legal?
If so, why did the Organization for Economic Cooperation and Development (OECD) and various countries propose new tax rules?

Please respond to all questions above.

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