Tax Revenue
Money paid by businesses and individuals to governments through various taxes (corporation tax, income tax, VAT, etc.), ...
Formula
Tax Revenue = Taxable Profit × Tax Rate
Real World
When Amazon established its UK fulfilment centres, the UK government gained corporation tax, employer National Insurance contributions, and income tax from tens of thousands of new employees.
Exam Focus
In 'evaluate MNC impact on host economies' questions, balance tax revenue benefits against transfer pricing reducing actual tax paid — examiners reward nuance.
How well did you know this?