The multinationals definitely all do it. When a company as big as Amazon turns round to the Turks & Caicos Islands or Luxembourg (a country so small they could re-carpet it for a tenner - it's cute, I've been there 😆), the company's profits are more than the country's GPD. They can ask for special tax rates and get them.

Then Amazon Luxembourg charges a "management fee" to (for example) Amazon UK that just happens to match the UK subsidiary's profit. So no tax paid in the UK (where the Corporation tax rate is 25%), and a special rate (often zero) paid on those profits now they've been moved to Luxembourg.

For smaller businesses, it often isn't worth the cost to set up the company structure and pay the expensive accountants to make it all work seamlessly.