Unveiling tax avoidance strategies of multinational corporations in Delta State


  • Abarika Christian Delta State University Abraka, Delta State, Nigeria




This study titled Unveiling Tax Avoidance Strategies of Multinational Corporations in Delta State investigates  different tax avoidance strategies used by MNCs in Delta State , it specifically assessed the impact of transfer pricing on tax liability minimization, it evaluated the frequency of profit shifting activities, and analyzed the influence of digitalization on tax planning. A mixed-methods research design, integrating both qualitative and quantitative approaches, was adopted to provide a comprehensive analysis. The study employed purposive sampling to select key participants, including tax officials, financial managers of MNCs, and tax consultants in Delta State. Data were collected through structured questionnaires and semi-structured interviews, capturing both statistical and in-depth perspectives. Quantitative data were analyzed using descriptive statistics and regression analysis. The key findings revealed that transfer pricing and profit shifting are the  predominant tax avoidance strategies used by MNC and  Digitalization significantly impacts tax planning and there is a strong relationship between the period of operation and the use of transfer pricing. Recommendations made includes, Strengthening transfer pricing regulations to curb intra-company transaction manipulation, Enhance taxation frameworks to effectively  tax digital transactions and intangible assets among others.

Keywords:  Digitalization, Multinational Corporations, Profit Shifting, Tax Avoidance, Transfer Pricing.