cryptohunter
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Profit repositioning via transfer valuation is a phenomenon in which foreign companies manipulate valuations between interconnected entities to reassign profits to jurisdictions with lower tax rates. This approach enables them to reduce their tax obligations and optimize their post-tax earnings. By artificially inflating costs in countries with high tax rates and diminishing revenues in countries with low tax rates, these companies exploit discrepancies in tax legislation. International endeavors and more stringent tax regulations have been implemented to tackle this issue. However, profit repositioning continues to pose a substantial obstacle in the modern global economy, affecting not only government revenues but also equitable competition among enterprises.
