HOW AVOID TAX LEGALLY
Company based in the us, wants ta Avoid Paying Tax on their
They do this by setting up (INCORPORATION) company called 'Y' in the Cayman Islands where there is zero tax.
Company Y cleverty owns the Intellectual Property (IP)
X makes $50BN after expenses but they don't want to pay the tax on their profit.
Since is stilt owed money for licensing the IP out.
X must now pay whatever is owed
charges SSOBN for renting out their IP to X.
Company X's profit is now $0. Therefore they pay zero tax because you only pay tax on profit.
Company Y's profit is now SSOBN and with zero tax rate In the CAYMAN ISLANDS, they pay zero tax.
Remember, X and are the same company; working together, they are just separate