Some multinational IT companies, / which generate revenue through digital advertising and data collection, / have been accused of exploiting loopholes in international tax regimes / to shift profits to low-tax territories.

This practice, / known as profit shifting, / allows corporations to pay minimal taxes / in the countries where they operate, / depriving governments of critical revenue.

In response, / several countries have attempted to impose digital services taxes on tech giants, / but these efforts have been met with fierce resistance.

Corporations argue / that such taxes unfairly target their business models, / while governments contend / that they are necessary / to level the playing field / and ensure that corporations contribute their fair share to the public good.

These disputes over taxation / illustrate the broader challenge / that governments face / in regulating multinational corporations.

Meanwhile, / traditional regulatory frameworks, / designed for nation-bound businesses, / are often ill-equipped / to address the complexities of global operations.

As a result, / corporations are frequently able to avoid or undermine regulations, / operating in a legal gray area / where national laws cannot easily reach them.