Corporate Tax Avoidance - The Problem of Aggressive Tax Planning

2018 ◽  
Author(s):  
Martin Petrin
Keyword(s):  
Tax Avoidance ◽  
Tax Planning ◽  
Corporate Tax

Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning

2015 ◽  
Vol 30 (4) ◽  
pp. 311-327 ◽  
Author(s):  
Megan F. Hess ◽  
Raquel Meyer Alexander
Keyword(s):  
Real World ◽  
Ethical Issues ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Learning Assessment ◽  
Class Discussion ◽  
Corporate Tax ◽  
Tax Havens ◽  
Multinational Organizations ◽  
The U.S

ABSTRACT This instructional case explores the ethical issues surrounding the corporate tax-planning and tax-avoidance strategies of multinational organizations. Drawing on the real-world experiences of SABMiller, one of the world's largest beverage companies, this case provides a launching point for students to consider the ethics of corporate tax planning. The ethics of multinational tax practices, especially the use of tax havens, has recently become the focus of media and legislative debate in both the U.S. and the U.K., and many well-respected companies, such as General Electric, Apple Inc., and Starbucks are now feeling the pressure to reform. In a post-case learning assessment, students demonstrated significant improvement in their understanding and indicated that they enjoyed discussing this controversial issue. The “Implementation Guidance” section and Teaching Notes offer guidance for in-class discussion of the ethical and tax issues in this case.

scholarly journals Aggressive Tax Planning and Corporate Tax Avoidance: The Case Study

2019 ◽  
Vol 3 (2) ◽  
pp. 27-38
Author(s):  
Adzhar Sulaiman ◽  
Kamil Md. Idris ◽  
Saliza Abdul Aziz
Keyword(s):  
Tax Avoidance ◽  
Tax Planning ◽  
Economic Consequences ◽  
Corporate Tax ◽  
Policy Makers ◽  
Policy Responses ◽  
Tax Practitioners ◽  
The Media ◽  
Inland Revenue

There have been increasing literature on aggressive tax planning and corporate tax avoidance, which focus on economic consequences (Ksovreli, 2015; Hanlon & Heitzman, 2010). Campaigners have targeted tax-avoiding corporations through the media, citing the enormous amount of tax losses (Hasseldine, Holland & Van der Rijt, 2012). It is pertinent that policy-makers and tax authorities to take action against tax avoiders and tax intermediaries. This paper focuses on the tax avoidance structures identified during tax audits and investigations and further contributes to an understanding of tax avoidance structures and models. The key models identified are related to the abuse of tax incentives and the use of corporate restructuring to minimize or reduced tax exposures. Based on the Case Management System of the Inland Revenue Board of Malaysia, we identify the key structures, their roles and incentives, and outline the tax avoidance schemes. The study summarizes a range of policy responses to tax avoidance, including anti-avoidance rules, disclosure rules and the regulation of tax intermediaries such as tax practitioners.

scholarly journals Developing sustainable tax strategies in the post-BEPS era.

2019 ◽  
Vol 69 (275-1) ◽  
pp. 63
Author(s):  
Juan Esteban Sanín Gómez
Keyword(s):  
Corporate Governance ◽  
Tax Avoidance ◽  
Close Relation ◽  
Tax Planning ◽  
Duty Of Care ◽  
Corporate Tax

<p>As never before, the concepts of tax planning, corporate governance and sustainability are having a close relation. Despite the fact that governments have tackled tax avoidance schemes, the director´s duty of care still obliges them to seek the best tax optimization for the Company they manage. In that sense, developing sustainable tax strategies that comply with transparent post-BEPS policies should could be considered as a standard of good corporate tax governance in today’s entrepreneurial world.</p><div> </div>

scholarly journals Does Information Asymmetry Affect Corporate Tax Aggressiveness?

2017 ◽  
Vol 52 (5) ◽  
pp. 2053-2081 ◽  
Author(s):  
Tao Chen ◽  
Chen Lin
Keyword(s):  
Information Asymmetry ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Corporate Tax ◽  
Difference In Differences ◽  
Analyst Coverage ◽  
Tax Aggressiveness ◽  
Tax Haven ◽  
Matching Estimator ◽  
Planning Capacity

We investigate the effect of information asymmetry on corporate tax avoidance. Using a difference-in-differences matching estimator to assess the effects of changes in analyst coverage caused by broker closures and mergers, we find that firms avoid tax more aggressively after a reduction in analyst coverage. We further find that this effect is mainly driven by firms with higher existing tax-planning capacity (e.g., tax-haven presence), smaller initial analyst coverage, and a smaller number of peer firms. Moreover, the effect is more pronounced in industries where reputation matters more and in firms subject to less monitoring from tax authorities.

Does Inside Debt Moderate Corporate Tax Avoidance?

2014 ◽  
Author(s):  
Thomas R. Kubick ◽  
G. Brandon Lockhart ◽  
John R. Robinson
Keyword(s):  
Tax Avoidance ◽  
Corporate Tax ◽  
Inside Debt
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