Title: How do companies minimize on their tax liabilities while still ensuring profits liability.

Statement of the problem:

Corporations try to maximize the return to their shareholders and minimize their corporate tax
liability. Countries tax profits at different rates, so companies structure their operations to pay the
least tax. They may create affiliated but separate companies in low-tax jurisdictions. They may
guarantee loans to those affiliates to transfer cash without paying tax. They may return profits to
high-tax jurisdictions through royalty or dividend payments rather than income and they may
generate profits abroad rather than at home. The key is to control nominally independent foreign
operations.
A company in a high-tax country can reduce its global tax liability by carrying out highly
profitable operations in low-tax jurisdictions while maintaining operations that cost money at
home. It must develop strategies for financing such foreign operations without using its own,
often already taxed resources. The new, foreign affiliate can then sell what it produces back to
the head office, further reducing the mother company's profits.

Research Design:

We choose this topic to make idea the cause and effect of tax that shareholders handle carefully
and what the responsibility of doing that .And what idea connect to the topic we chose to our on
the job training or (OJT).We decided to get this because Business man are always fight and fight
because when you doing a business you may pay a lot like area you started, And who build your
business and electricity bill and water bill continues.

Statement of the problem:

According to Hugh Dalton, ‘ a tax is a compulsory contribution imposed by public authority,
irrespective of the exact amount of service rendered to the taxpayer in return, and not imposed as
penalty for any legal offence.”
According to Godfrey November 9, 2102 It’s good. I’ve learnt something from great guru in
Economics: thanks to Adam’s smith.
According to Innocent mdemu March 28, 2013 well done this is what we want excellence to
adam smith he tried a lot.
According to Julius Lokopu April 2, 2103 Adam smith, although departed has laid a solid
foundation to the modern economists,well done
According to Anonymous April 11, 2013 The income which they enjoy under the protection of
the state is the rental value of land. It is a misinterpretation to equate it with income and if you
read through Wealth of Labour you will see that Smith was strongly against taxation of the
wages of labour, which he regarded as absurd. The protection of the state refers to land rights
which cannot exist without such protection.