Wal-Mart Avoids Taxes by Paying Rent to Itself--EXPLODE--http://digg.com/business_finance/Wal_Mart_Avoids_Taxes_by_Paying_Rent_to_Itself--EXPLODE--To reduce its taxes and costs, it sets up one subsidiary to run its stores and another subsidiary to own its real estate. The operating subsidiary pays rent to the real estate subsidiary and takes a tax deduction for the rent, even though that money eventually ends up in the corporation's own pocket.