Trans-national Corporations (TNCs) around the world trying to avoid taxes is common knowledge. The existing international taxation regime, structured around the principles of arm's length and separate legal entity, allows TNCs to systematically avoid taxes by playing with the transfer pricing rules and utilizing offshore tax havens. The developing nations suffer gravely. Currently, the developing countries have a mere lo% to 20% proportion of their GDPs in tax revenue, while the OECD countries have 30% to 4o%. Even the revenue collection to estimated revenue potential ratio is lower than those in the OECD countries. Between 20o5 and 2007, while Argentina, Brazil, China, India, Indonesia, Mexico and South Africa together lost a total of £119.5 billion in capitalflight to the EU and the US, the poorest countries in the world lost £5.78 billion. This calls for a shift to unitary taxation system. The unitary taxation approach recognizes that business activities carried out or profits earned by a TNC accrue to that TNC as a whole rather than to individual divisions of it. In assessing tax liability, this approach requires the TNC to submit consolidated accounts of all its subsidiarie