TOEFL TOEFL Exam
TOEFL Test Of English as a Foreign Language(Educational Testing Service) (Page 64 )

Updated On: 26-Jan-2026

This tax ________ is legal until governments legislate to prevent this practice.

  1. adjustment
  2. avoidance
  3. emancipation
  4. evasion

Answer(s): B



This is done without any change to procedures, operations or added value; it is done by merely changing book________.

  1. accounts
  2. documents
  3. entries
  4. values

Answer(s): C



In other words, it is possible for a multinational company to minimise its ________ for corporation tax by transfer pricing.

  1. culpability
  2. eligibility
  3. liability
  4. opportunity

Answer(s): C



According to Manfred Davidmann, this may be a purely ________ figure, meaning by this that it may be unrelated to costs incurred, to operations carried out, or to added value.

  1. ambiguated
  2. ambiguous
  3. arbitrated
  4. arbitrary

Answer(s): D



When one part of a multinational organisation in one country transfers (that is, ________) goods, services or know- how to another part in another country, the price charged for these goods or services is called 'transfer price'.

  1. gives
  2. relocates
  3. sells
  4. ships

Answer(s): C



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