This is a commonly accepted best practice in corporate accounting. In 2006 the IRS approved Google's transfer pricing arrangements. Also, it's so common that

This is a commonly accepted best practice in corporate accounting. In 2006 the IRS approved Google's transfer pricing arrangements. Also, it's so common that there is a name for it - "The Double Irish". Bloomberg recently had an article on the same topic: http://www.bloomberg.com/news/2010-05-13/american-companies-dodge-60-billion-in-taxes-even-tea-party-would-condemn.html http://www.bloomberg.com/news/2010-05-13/american-companies-...