Abstract
One of the major strategies usually employed by companies to avoid taxation in Nigeria is to shift their incomes or profits to their subsidiaries located in low or no tax countries, usually referred to as ‘tax haven countries’. This is a result of the globalisation of international trade which made it possible for companies to extend their businesses to countries other than where they are headquartered. Thus the article examines income and profit-shifting to tax haven countries, its international regulations as well as its regulations in Nigeria. The article found that Nigeria does not have an adequate legal framework to prevent companies from shifting incomes and profits to their tax haven subsidiaries. The article recommends that the Nigerian government should urgently put in place the necessary legal framework and administrative procedures to implement the Organisation for Economic Co-operation and Development (OECD) 15-Action Plan on Base Erosion and Profit Shifting (BEPS) in line with international best practices.
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