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Recently, Amazon and Google and other large multinational companies are reported that they use changing corporate structure to avoid tax. This behavior caused widespread international concern. Many multinational companies use digital economy transactions, and take advantage of international tax loophole to erode basic tax. This emerging trading pattern is a huge challenge to national tax authorities. Thus, researching the tax mechanism of Transnational Corporations in the digital economy, adoi:10.4236/me.2016.73038 fatcat:27ymiwhkmbaexcyodewxc4i3m4