Tax Evasion

2 words in this vocabulary list

noun a method used by multinational companies to determine the prices at which they buy and sell goods and services among their subsidiaries

  • The company implemented a new transfer pricing policy to ensure compliance with international tax regulations.
  • The company had to figure out how to price transfers to meet tax rules.
  • The company had to juggle prices to avoid getting in trouble with the taxman.
  • Setting transfer pricing is like walking a tightrope to balance profits and taxes.

noun capital that is sent out of a country in order to avoid risk or instability, often for investment in foreign markets

  • Flight capital refers to the movement of money from one country to another for the purpose of investment or to escape political or economic instability.
  • People often move their flight capital to more stable countries to protect their assets.
  • Rich folks stash their flight capital in offshore accounts to avoid taxes.
  • In times of crisis, individuals may resort to flight capital as a means of securing their financial future.