Tax Evasion and Ethics

Published on December 2016 | Categories: Documents | Downloads: 32 | Comments: 0 | Views: 223
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Do tax evasion and ethics go hand in hand

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 Who did it?

 eBay avoided £ 50m in tax  IKEA halved its tax bill  List goes o ….

 Starbucks paid less than 1% tax on its profit  Former Italian Prime Minister Bersculoni

 How do they do it?  Sister Company  Round Tripping  Tax havens

 Special Purpose Entities (SPEs)

 Influencing audit committees

Who is affected?
 Government
 Less of taxes  Fiscal deficit  Profits siphoned off to other countries

 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 usi ess ethi , there is a lo g-term

loo

.

Is there a company that can get success without ethics? Fro the fa ts, the a swer see s to e NO  Whether E ro or A derso 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

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