How does tax evasion work?
In: Economics
One way to make it work is to take money you made and make that money through a company that is based somewhere with weak laws. For example, in the US, you owe taxes on creative property. This is the case in every state except Rhode Island. So, Coca Cola has a subsidiary based in Rhode Island the owns their logos and colors, and they rent it from that company for like $1. In this way, Coca Cola avoids paying for that property, but still makes money liscencing it
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