Tax Avoidance and Transfer Pricing in Digital Multinationals: A Policy Evaluation

Abstract

This paper evaluates the challenges and policy responses related to tax avoidance and transfer pricing practices of digital multinationals. Given the rapid growth and unique business models of these companies, traditional tax frameworks struggle to effectively address their tax strategies and profit allocation. The study examines current international and national policies, identifies gaps and limitations, and proposes targeted recommendations for enhancing tax fairness and compliance. By analyzing case studies and assessing the impact of existing regulations, the paper aims to contribute to the development of more robust and equitable tax policies in the digital economy.