We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Offshore Tax Evasion - Essay Example

Comments (0)
Summary
Final paper draft Addressing Offshore Corporate Tax Evasion In partial fulfillment of the requirements for Your Course Submitted by Your Name Your College Your College Location The DATE Abstract Tax evasion and tax avoidance are two sides of the same coin, both denying governments of needed revenue…
Download full paper
GRAB THE BEST PAPER
Offshore Tax Evasion
Read TextPreview

Extract of sample
Offshore Tax Evasion

Download file to see previous pages... However, there exist numerous opportunities for juristic entities such as corporations, foundations and trusts to avoid taxation by operating in multiple, carefully chosen jurisdictions using carefully chosen techniques designed to minimize taxes. This report identifies various methods of tax avoidance by multinational corporations and other entities and makes policy recommendations with respect to closing these loopholes and level the playing field between competing businesses and tax jurisdictions. Outline Introduction Offshore Tax Evasion and Avoidance Tax Havens Corporate Tax Avoidance Methods Use of Tax Havens Debt Allocation Earnings Stripping Transfer Pricing Contract Manufacturing Hybrid Entities Hybrid Instruments Magnitude of Losses Policy Issues Repeal of Deferral Partial Abolition of Deferral Formula Aportionment Splitting Foreign Tax Credits Recommendations and Conclusions. Introduction Offshore tax avoidance has greatly increased in the last decade. Multiple multinational corporations; banks and even individuals have shifted their tax responsibilities and eliminated tax in their domestic businesses (Owens, 2007). Tax avoidance resulted in reduced government revenue and reduced domestic businesses activity, as big multinationals were rewarded for their financial manipulation instead of innovation, job creation or productive investment. Lack of transparency by various governments has greatly facilitated offshore tax avoidance. Poor preparation at the policy level in countering tax abuse has resulted in many multinationals and individuals relocating their “tax home” to a tax haven. As mentioned by Sullivan (2008, p. 726), use of offshore accounts poses a threat to sovereign governments as companies use havens like Cayman Islands and Bahamas to evade tax. Global integration of financial markets and the improved communication and information technologies has made the creation of these offshore accounts and shell companies easy. Globalization, coupled with lack of transparency among various countries (which is vital in tackling tax abuse) has increased the incidence of tax evasion and avoidance at both the individual and corporate level. In the new era of banking without borders, corporations and wealthy individuals are free to transfer their capital abroad and channel it to passive investments in offshore jurisdictions. This makes it possible for them to evade paying income taxes. Offshore tax havens are countries that engage in “tax competition” with the high-tax regimes. As mentioned by Sullivan (2007, p. 329), offshore tax evasion and avoidance has put sustainable and responsible businesses at a competitive disadvantage as their competitors avoid taxation by the use of tax haven structures and strategies. Tax evasion deprives countries of revenue and this limits the development and modernization of infrastructure, which is vital for a strong economy. Offshore tax evasion According to Owens (2007), international tax evasion is categorized into corporations’ tax evasion and individuals’ tax evasion; it can also be categorized into legal tax avoidance and illegal tax evasion, depending on whether the tax avoidance is broadly or narrowly defined. International tax evasion could also be distinguished by the measures taken or measures that could be used in reducing the subsequent loss. Government revenue losses arising from individual tax avoidance are usually associated with the use of narrowly defined tax haven, corporate tax evasion ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Tax avoidance,tax evasion,tax mitigiation
Tax avoidance is a means to escape from taxation, which is allowed and sanctioned by law. A taxpayer committing this will not be legally held civilly or criminally liable to the government provided it is used in good faith and within the process allowed by law, otherwise the taxpayer will be committing tax evasion which is a crime.
8 Pages(2000 words)Essay
Social Deviance: The Act of Tax Evasion
Tax evasion is a social deviance by the elite community working in white collar jobs. Tax evasion is a conscious avoidance to pay tax. Elite deviance refers to wrong doing of powerful and wealthy organizations and individuals who refuse to pay tax. The organizations or individuals evade paying tax by making corporate contributions and illegal campaign contributions that aim at deceiving the public and the government.
3 Pages(750 words)Essay
Discuss, with reference to relevant academic literature, how a tax system might be designed to combat avoidance and evasion
To finance its operations, the government need to collect revenue through taxation (Grau, 2003). It has however been realized that there exist some concepts surrounding tax imposition and collection that tend to make it difficult to effectively collect the taxes.
8 Pages(2000 words)Essay
Dissertation Topic in Financial Management
On march 2005 KPMG issued a report saying, "Tax has changed dramatically in recent years. Its public profile has become much more conspicuous, it has acquired moral, ethical and social dimensions that have never been discussed before and, for these reasons, the business management issues associated with tax have become more complicated, more subtle, more steeped in risk and much more challenging."
3 Pages(750 words)Essay
Tax Evation
Without taxes, the government cannot deliver even the basic services it owes to the people. It cannot construct the necessary structures to develop the country. It cannot build schools, hospitals, and all other government buildings where services are rendered to the people.
10 Pages(2500 words)Essay
Offshore Corporation/Tax Haven
Due to faster planes, the Internet, electronic documents, digital demands, and virtual everything, it definitely is a small word after all! Internationalization is something that the business environment must consider or those who do not will fall behind as they cannot keep up with the global way of conducting business.
60 Pages(15000 words)Dissertation
Tax Havens or Offshore Financial Centre
y also examines the use of tax havens (low-tax jurisdictions) by the multinational corporations, as well as the impact of these tax havens within divergent regions of the world. “Examples of such tax havens”, Desai et al submit, “include Ireland, Luxembourg and Switzerland
6 Pages(1500 words)Essay
Tax Accounting Questions. Assignments
The main difference is that GAAP measures revenues and expenses while income tax accounting measures gross income and deductions. Under the GAAP, the matching principle records revenue and losses
12 Pages(3000 words)Essay
Tax(see attachment)
It is a moderate sized company with all its operations in UK alone. The products are exported to other countries but the company does not have any branches or operations in foreign countries. It is a single company with no subsidiaries. In the recent years
12 Pages(3000 words)Essay
TAX
The primary aim of the codes of ethics is to articulate highest behavioural standards in the organizations. Therefore, a code of ethics can be clearly
9 Pages(2250 words)Essay
Let us find you another Essay on topic Offshore Tax Evasion for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us