Who did it? eBay avoided 50m in tax Starbucks paid less than 1%
tax on its profit IKEA halved its tax bill Former Italian Prime
Minister Bersculoni List goes o.
How do they do it? Special Purpose Entities (SPEs) Sister
Company Round Tripping Tax havens Influencing audit committees
Who is affected? Government Less of taxes Profits siphoned off
to other countries Fiscal deficit General public Less spending from
govt., less benefits!
Opinion too varied and depends on the culture Greece has a major
tax evasion problem In India, Tax evasion is rampant Specialized
persons or firms guide on tax avoidance Another way is bribing the
Income Tax officials
The problem is more prevalent among the self employed
Even doctors, chartered accountants or property valuators,
,builders , chartered engineer ,cine artists , tax consultants,
stock brokers do tax evasion
Reason for Tax evasion is lack of trust in government Results
into black money which causes illegal activities
Where there is usiess ethi, there is a log-term loo .
Is there a company that can get success without ethics?
Fro the fats, the aswer sees to e NO Whether Ero or Aderso or
our ow atya , they all finally paid for their Unethical Practices.
Arthur Anderson the one-time Big 5 accounting firm went entirely
out of business, affecting 22,000 workers,
most of whom had no connection to Enron.
Fiercer statutory regulation of the auditing profession
Mandatory rotation of audit firms so that individuals do not become
too committed to their clients
Stronger non-executive directors who can work as a check against
malpractices by powerful CEOs
The Government should levy a minimum tax on annual revenue
earned by a Company
Reputation management and competitive advantage Enhanced social
license to operate Employee satisfaction Risk management
Performances Minimised environmental impacts