How Transfer Pricing Became a Trillion-Dollar Tax Battle

Episode 14 of The Tax Policy Podcast dives into transfer pricing — the accounting rules that let multinationals shift profits across borders. Lucas and Luna break down how companies like Apple and Starbucks have used these rules to pay single-digit tax rates, why the OECD's 2021 global minimum tax deal is reshaping the game in 2026, and what the 'arm's length principle' actually means. They walk through a concrete example: a hypothetical gadget maker moving IP to a Bermuda subsidiary to save $40 million a year. The episode also covers the EU's recent Starbucks ruling and the IRS's new 2025 transfer pricing penalty guidelines. By the end, listeners will understand why transfer pricing is often called the 'tax shelter of the 21st century' and how the current reform wave could close loopholes worth hundreds of billions. #TransferPricing #CorporateTax #OECD #GlobalMinimumTax #Arm'sLengthPrinciple #ProfitShifting #TaxLoophole #Starbucks #Apple #IRS #EUStateAid #BaseErosion #IntellectualProperty #TaxPolicy #Economics #FexingoBusiness #BusinessPodcast #TaxReform2026 Keep every episode free: buymeacoffee.com/fexingo