This essay critically evaluates the role of the tax practices of multinational corporations (MNCs) and their impact on worldwide inequality and underdevelopment. Using Associated British Foods’ (ABF) subsidiary company, Zambia Sugar Plc, as a case study, it demonstrates the highly complex tax mechanisms MNCs use to minimise the taxes they pay to developing countries like Zambia and the subsequent impact. It starts with an overview of the relevant issues of inequality and underdevelopment, the worldwide dominance of MNCs, tax and development, and tax dodging and tax incentives (the two forms of abusive tax practices used by MNCs). In concludes with an analysis of the current international initiatives aimed at countering the abusive tax practices of MNCs.