Corporate Tax Evasion Essay example - 690 Words

Corporate Tax Evasion A growing trend in our society today is corporate tax evasion. It has become increasing more common for corporations to pay no or little income tax, and in some cases actually receive money back from the government. It is illegal and therefore deviant by that definition. Corporate tax evasion (using borderline legal means) is widespread. White-collar crime is a term that is usually applied to crimes associated with business that do not involve violence or bodily injury to another person. Corporate tax evasion falls into the category of white collar crime. There are 3 types of corporate income taxes as follows: National 30% of taxable income, Local 20.7% of National Tax, and Enterprise 10.08% of†¦show more content†¦Shelters reduce the corporate tax base and thus raise the burden on other taxpayers. Shelters undermine the vitality of our voluntary tax system. Companies feel obliged to follow the lead of competitors who abuse the tax code in a race to the bottom. The New York State Bar recently highlighted the corrosive effect of shelters, stating: The constant promotion of these frequently artificial transactions breeds significant disrespect for the tax system, encouraging responsible corporate taxpayers to follow the lead of other taxpayers who have engaged in tax advantaged transactions. And shelters divert resources from productive investment in the real economy. As a former tax official, now a leading member of a well-known law firm has said, You cant underestimate how many of Americas greatest minds are being devoted to what economists would all say is totally useless economic activity. These evasion shelters include; Lease-In Lease-Out (LILO) shelters whereby companies attempted to avoid tax through circular transactions. In one extreme case, a company leased a town hall from a Swiss municipality and leased it back the same day. This measure saved the corporation $10.2Show MoreRelatedWhy Corporations Are Avoiding Pa ying Millions On The Government Of The United States And Other Countries975 Words   |  4 Pagesavoiding paying taxes to the government of the United States and other countries. This tax avoidance costs the governments of various countries millions, if not billions of dollars in tax revenue every year. The government needs to stop the manipulation of tax loopholes by US corporations who are avoiding paying millions of dollars in taxes each year and eliminate the tax havens and loopholes once and for all. Tax loopholes need to be eliminated because multinational corporations avoid paying billionsRead MoreThe Relationship Between Tax Avoidance And Corporate Social Responsibility1507 Words   |  7 Pagesrelationship of tax avoidance with the corporate social responsibility (CSR) that companies undertake the responsibility for social welfare and development (Matten and Moon, 2008), and ethical behaviour of companies, which can be defined as govern the actions of an individual in the business organizations under contemporary standards (Ferrell and Gresham, 1985). Tax avoidance, which refers to companies use suitable methods to reduce the amount of tax within the law is different with tax evasion, which illegallyRead MoreThe Relationship Of Tax Avoidance With Corporate Social Responsibility1468 Words   |  6 Pagesthat the relationship of tax avoidance with corporate social responsibility (CSR) and ethical behaviour of companies. Specifically, corporate social responsibility can be de fined as companies undertake the responsibility for social welfare and development (Matten and Moon, 2008). For ethical behaviour, it is referred to govern the actions of individuals and organizations in the business under contemporary standards (Epstein, 1987). Moreover, this is the difference between tax avoidance, which companiesRead MoreTax Avoidance2170 Words   |  9 Pagesdistinction between tax avoidance and tax evasion from academic publications. Tax books have defined tax avoidance as â€Å"the lawful minimization of tax liability through sound financial planning techniques, while tax evasion is the â€Å"unlawful attempt to minimize tax liability through fraudulent techniques to circumvent or frustrate tax laws†. The consequences of either action are also clear. The former is not punishable by law while the latter is. However, the lines between evasion and avoidance haveRead MoreThe Relationship Of Tax Avoidance With Corporate Social Responsibility1498 Words    |  6 Pageson the relationship of tax avoidance with corporate social responsibility (CSR) and ethical behaviour of companies. Specifically, corporate social responsibility can be defined as companies undertake the responsibility for social welfare and development (Matten and Moon, 2008). For ethical behaviour, it is referred to govern the actions of individuals and organizations in the business under contemporary standards (Epstein, 1998). Moreover, this is the difference between tax avoidance, which companiesRead MoreBlack Money1302 Words   |  6 Pagesand need to tackle the black money menace, and other related aspects    What does the term Black Money mean? Black money means,the money or income not declared for tax to the govt or relevant authorities, and hence the tax for which is not paid to the government. Thus, in simple words -black money is income on which tax is not paid and deliberately evaded.How black money is generated? Let us take the following two cases for example. 1. A person purchases a property or residential house.Read MoreThe Relationship Of Tax Avoidance With Corporate Social Responsibility1504 Words   |  7 Pageson the relationship of tax avoidance with corporate social responsibility (CSR) and ethical behaviour of companies. Specifically, corporate social responsibility can be defined as companies undertake the responsibility for social welfare and development (Matten and Moon, 2008). For ethical behaviour, it is referred to govern the actions of individuals and organizations in the business under contemporary standards (Epstein, 1998). Moreover, this is the difference between tax avoidance, which companiesRead MoreTax Havens And Its Effects On America1322 Words   |  6 PagesIn addition to allowing corporations to store billions of untaxed dollars, tax havens are also used to support dictators and undemocratic societies. All dictators like Muammar Gaddafi have had billions of dollars stashed in tax havens all around the world. â⠂¬Å"Tax havens are also used as the principal route through which laundered money escapes developing countries.† (Palan) The reason tax havens exist, is for the same reason why they existed 50 years ago; to attract money and investments from aroundRead MoreA Brief Note On Tax Policy Center ( 2016 )1418 Words   |  6 PagesAccording to Tax Policy Center (2016), the income taxes from corporation and individuals have been the largest tax revenue resources in UK for past 50 years. Although zero or extremely low income taxes are applied in the tax haven countries to non-resident individuals and companies, the reason behind that the tax haven countries can be still beneficial is in increasing inward foreign investment. According to Dharmapala and Hines (2009) and Mara (2015), the host country can attract significantly greaterRead MoreCorporate Tax Case Study754 Words   |  4 Pagesthe corporate tax rate in the United States? Yes argument. It is an undisputed fact that the United States has one of the highest corporate tax rates of Organization of Economic Cooperation and Development (OECD) countries. As a result many American multinationals resort to tax inversions or other methods to try to reduce their tax rate. Consider Apple, which has funnelled profits through Ireland for years rather than repatriate those profits to the United States and pay America’s corporate tax