International Tax Avoidance Practices - A Case Study of Digital Economy Companies GAFAM

Abstract

The study aims to address the tax strategies practiced by American multinational companies (GAFAM), By displaying the legal and accounting tools that it uses to achieve his goals. in light of the increasing international competition to establish offshore financial centers and tax havens. The study uses the method of documentary analysis of governmental and non-governmental data and reports by examining and demonstrating the tools used in practicing tax planning strategies. The results of the study arrived to prove the involvement of the digital economy giants in practicing high-frequency tax planning and engineering strategies, It allowed it to avoid paying billions in taxes, as they paid $ 155.3 billion in taxes less than they should have paid during the period 2010-2019 with the participation of international consulting and auditing firms. The study also shows that the international efforts to put an end to such practices as a BEPS project and CCCTB project are still just proposals and draft laws that have not yet taken place.