<p>Does the complexity of the ownership structure of multinational enterprises (MNEs) enable tax avoidance? We build a measure of complexity based on the number of layers of ownership between subsidiaries and the headquarter within an MNE. Using firm-level cross-country data, we document that subsidiaries belonging to more complex MNEs have a higher propensity to report zero profit, and the more so for high-tax subsidiaries. Regardless of their size, only MNEs with sufficiently complex ownership structure shift profits away from their high-tax affiliates, whereas MNEs with flat ownership structures do not display such a pattern.</p>