This article from the Canberra Times is worth a read. Check it out!
via Cost-benefit analysis puts corporate tax avoidance in perspective.
As I read the article, I felt that the Canberra Times had understated the problem. Multi-nationals typically operate tax avoidance schemes on a global basis and in my view, it’s necessary to look at the problem from a global perspective, rather than as a national issue.
Also I question how hard governments will push ‘big-business’ for fear of upsetting them and losing their support? In Australia, for example, I believe that Tony Abbot is on familiar terms with the owners of the major mining companies?
Dr Alf is correct.
Governments are keen to say that they want to stop tax avoidance but in practice do the opposite.
In 2013 I visited the Dublin financial district and saw that BT and State Street(the company appointed by the UK Government to administer Auto Enrollment pensions ) both had a presence in that City.
This is despite no publicity in the UK press or on the BBC.
HSBC a UK based bank also had an office there but did no banking and did not even have a branch in the whole of the Irish Republic.
The HMRC has completed a sale and leaseback deal on all its buildings through an entity called MAPELEY STEPS based in Bermuda and numerous UK companies like Tesco PLC,Guardian Media Services and Daily Mail and General Trust have complex tax arrangements and are donors to the Conservative Party,the Labour Party and the Conservative Party respectively.
Getting global agreement on tax avoidance is well nigh impossible so the answer is to follow the example of Singapore which keeps taxes low enough to avoid the worst excesses and runs the most efficient Government in the world with properly enforced laws and low levels of corruption and waste.