Tax avoidance and tax evasion

Whether tax avoidance is an acceptable business practice Tax avoidance is a very common phenomenon in modern society, as it is a legal way to reduce taxation, in other word, to increase profit. There are two main types of tax avoidance, one is using methods, allowed by law, to minimise tax, another one is manipulating tax loopholes to reduce tax payment. This essay will mainly discuss the later type, as the line between this kind of tax avoidance and tax evasion is not clear, and there are numerous debates about whether tax avoidance is an acceptable business practice. This article will be divided into three main parts: first of all, it will figure out the accurate definition of tax avoidance; next, it will illustrate the reason why this phenomenon…

The 1931 Al Capone Case of Al Capone could be described as an attempt to prosecute whatever will stick. More specifically, Linder states that a man who could not be punished for murder, is later punished for tax-evasion (Linder “All Capone Trial (1931): An Account”). However, the trial itself was not easy. More specifically, the witnesses needed to be made up of individuals who would turn on Capone (Linder “All Capone Trial (1931): An Account”). Even more so, Capone attempted to influence the…

Case Study: Haddock Corporation Student’s Name Institutional Affiliation Case Study: Haddock Corporation Often, there is a fine line between tax avoidance and tax evasion. While the former is legal, and the Preparer can pen a signature on the tax return, the latter is clearly fraudulent and legal, and can lead to a conviction in a court of law. The fact that the business owned by John pays inflated rent to him is seemingly suspicious and confusing and perhaps done to reduce distort its…

Introduction of critical review This report will criticize the ' Cigarete tax avoidance and evasion: findings from the International Tobacco Control Policy Evaluation project '. This article is written from G Emmanuel Guidon, Pete Driezen, Frank J Chaloupka and Geoffrey T Fong. The article was published online on 13 November 2013. In addition, this article was cited from 26 other articles. The objective of this article is to document, using information from International Tobacco Control…

After the horrible events of the St.Valentine's Day Massacre the president at the time, Herbert Hoover, ordered the government to initiate an investigation on his tax evasion. The supreme court ruled that “income gained on illegal activities was taxable” (History.Com staff, 1) which gave the supreme court and the government a very strong case and probable cause to prosecute capone. Shortly after in June 5, 1931 the government convicted Capone on 22 counts of tax evasion. After many deliberations…

Despite the levels of tax evasion done by Apple to America, Apple is far worse in its taxes overseas. Apple not only hurts the US but also other countries like the UK, France, and Germany. In fact, according to a study done by the Huffington Post, Apple paid absolutely no corporate taxes in 2012 in the UK.” Despite making millions in profit in Britain, Apple paid no corporate taxes to the U.K. last year, according to company filings” (Huffington Post) The second way corporations evade paying…

is nowhere near perfection. The degree in which tax laws should be enforced and analyzed is very complex. The main question to whether the proper tax enforcement allowed depends largely on the current tax structure. Even the role of complexity in the current tax system is a factor in influencing the size of the large tax gaps and substantial amount of tax avoidance (United States Congress House of Representatives, 2010). Tax complexity is also emphasized. Tax complexity allows other ways to hide…

difference between the two tax structures is the U.S. does not receive revenue from value-added taxes and the U.K. does not receive revenue from sales taxes. Another difference is the tax base of the U.S. is more than 10% smaller than the U.K. Both countries are similar in allowing personal standard deductions for each dependent. Another similarity is both tax systems’ personal income tax is the greatest source of revenue for the federal and central government. The tax systems are also similar…

I understood that the higher the tax revenues are paid by both individual and corporates reduces investments’ rates and increases jobs. More money is invested into education and health care. This issue discussed is very important to our national grid. In my previous paper I elaborated the importance of taxation in infrastructure, public education and health care commonly for economic growth, however there…

Management is highly confident that all other tax positions will be sustained by the taxing authority upon examination (recognition) and that 100 Copyright 2007 Deloitte Development LLC All Rights Reserved. Case 09-9: Bricks & Mortar Page 2 percent of the deductions claimed in the tax return should be reflected in the financial statements (measurement) because they are based on clear and unambiguous tax law. Refer to Appendix A for information about situations in which interest and penalties…