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Tax Evasion and Ethics

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Do tax evasion and ethics go hand in hand

Text of Tax Evasion and Ethics

  • 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