To avoid income shifting, the principle of the fruit and the tree requires that income is taxed to either the person who earns it or the person who owns the asset that produced the income. True
Income shifting:
In the most basic terms, income shifting is when multinational companies shift income from high-tax countries to low-tax countries (or tax havens), and/or shift deductions from low-tax countries to high-tax countries.
Why and how does the tax get shifted?
Tax shift is a kind of economic phenomenon in which the taxpayer transfers the tax burden to the purchaser or supplier by increasing the sales price or depressing the purchase price during the process of commodity exchange. Tax shift is the redistribution of tax burden.
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