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    Unit 8 Taxation

    Uploaded by

    Kiều Trinh

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    © All Rights Reserved
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    Unit 8 Taxation

    Uploaded by

    Kiều Trinh
    27 views25 pages

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views25 pages

    Unit 8 Taxation

    Uploaded by

    Kiều Trinh

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25

    UNIT 8

    TAXATION
    TABLE OF CONTENTS

    I About us

    II Terminology

    Presentation III How corporates avoid tax


    Overview IV Case study: Paradise papers

    V Game

    02
    TERMINOLOGY

    Tax
    Determined unilaterally, non-repayable,
    mandatory money payment collected
    by public authorities in accordance
    with tax law.
    TERMINOLOGY

    income tax corporate tax


    The tax people pay on their wages and
    The tax on business profits (in Britain)
    salaries (and business profits in the US)
    TERMINOLOGY

    Tax avoidance Tax evasion


    Reducing the amount of tax you pay to
    Making false declarations and is illegal
    a legal minimum.
    Some tactics
    for avoiding tax
    Tax loss
    Bringing forward capital expenditure
    (on new factories, machines) so that
    at the end of the year all the profits
    have been used up
    Tax havens
    Multinational companies often set
    up their head offices in low-tax
    countries such as Liechtenstein
    Monaco, the Cayman Islands, and
    the Bahamas
    Laundering
    money
    Criminal multinationals such as
    the Mafia tend to pass money
    through a series of companies in
    very complicated transactions in
    order to disguise its origin from
    tax inspectors and the police
    Tax haven
    A country that offers foreign
    businesses and individuals minimal or
    no tax liability for their bank deposits
    in a politically and economically stable
    environment.
    Characteristics

    No or only nominal tax Lack of Effective Lack of Transparency


    Exchange of Information
    What makes a tax haven?

    Political and economic stability Lack of Exchange Treaties


    controls

    Banking, professional, ​Location


    and support service
    Shell company
    A legal entity
    Exist only on paper, with no full-time employees,
    and no office
    Used for legal and illegal purposes

    A single office building in the Cayman Islands


    is home to 19,000 shell companies
    How do companies benefit
    from tax havens?
    For those who use tax havens
    Investments made through tax shelters can be
    especially lucrative.

    Gain advantages in the area of credit, since it may


    be less expensive for U.S -based companies to
    borrow funds internationally.

    Massive tax savings by routing payments, profits or


    investments through subsidiaries in offshore
    financial centers.
    Case study:
    Paradise Papers
    Paradise Paradise Papers refer to a 2017 leak of:

    papers More than 13.4 million confidential


    electronic documents

    Publicized by the International


    Consortium of Investigative
    Journalists

    Related to offshore investments made


    by the company registries of 19 tax
    havens
    Highlights of
    the reveal
    Involve the names of the world’s
    biggest businesses, heads of state
    and global figures in politics,
    entertainment and sports
    Highlights of
    the reveal 6.8M documents relate to a law firm
    and corporate services provider that
    operated together in 10 jurisdictions
    under the name Appleby

    Help clients reduce their tax burden;


    obscure their ownership of assets; and
    set up huge offshore trust
    How did the rich
    hide their cash offshore?
    Impacts of
    the leak
    Exposed the “supposedly anonymous”
    activities and transactions of well-known
    celebrities, government leaders, politicians,
    and royalty.
    Impacts of
    the leak
    Sparked investigations into tax-related
    crimes such as tax evasion and money
    laundering.
    Impacts of
    the leak
    The United Kingdom began reviewing its
    dependencies' tax status following the
    reveal
    Impacts of
    the leak
    Switzerland started considering changes
    to how companies are regulated.
    GAME

    LINKIE:
    https://classic.blooket.com/host/join

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