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Edexcel A-Level Economics A2 4.3.5 4c Measures to Control Tncs to Reduce Tax Avoidance the Regulation of Transfer Questions

Practise identifying global minimum corporation tax and transfer-pricing regulation as measures governments use to limit TNC tax avoidance.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • recognise global minimum corporation tax as an international measure to reduce TNC tax avoidance
  • select transfer-pricing regulation over policies that mainly attract or support TNCs

Edexcel A-Level Economics A2 4.3.5 4c Measures to Control Tncs to Reduce Tax Avoidance the Regulation of Transfer Questions question 1

[Maximum number: 1]

In 2021 the governments of 136 countries agreed to set a global minimum corporation tax rate of 15%. The aim of this agreement was to make it more difficult for transnational companies (TNCs) to avoid paying corporation tax.

Which one of the following is also a measure that governments may use to control TNCs?

A

Cutting costs of bureaucracy

B

Improving access to banking

C

Increasing indirect taxes

D

Regulation of transfer pricing

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