Transfer pricing
This occurs when goods or services are exchanged, across national borders, but within a multinational company. This creates the scope for a subsidiary within a high-tax jurisdiction to sell at a low price (or buy at a high price) when dealing with another subsidiary in a low-tax area. As a result, the subsidiary in a low-tax nation makes most of the profit. There are rules against this form of tax avoidance but it undoubtedly occurs: see this article.
