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The morality of tax avoidance
The document discusses the morality of tax avoidance, particularly by large companies, and its impact on public services and economic security. It emphasizes that while tax avoidance may be legal, it is considered immoral as these companies benefit from public resources without contributing fairly. The example of Starbucks is used to illustrate how multinational corporations exploit tax regulations for profit while sacrificing ethical responsibility.
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The morality of tax avoidance
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- 2. Why this topic? Becauseit’s a widespread phenomenon, mostly among the large companies, thereby affecting the quality of public servicies and sometimes also the economical security of the states!
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- 5. Not that hard!No? Legal, but not so moral!
- 6. Why immoral? Because theyuse all the public services without paying the the price for it, as we do. education health system security well trained labor force infrastructure
- 7. But why shouldbe moral to pay taxes for this?
- 8. „Taxes are theprice we pay for a civilised society” Oliver Wendell Holmes Famous American Jurist
- 9. If you don’twant to pay for it Feel free to do business here
- 10. The big 4 andnot only them! Who makes this possibile?
- 11. They hidden thispractice under the name TAX PLANNING
- 12. They call this TAXPLANNING sometimes it is TAX AVOIDANCE but
- 13. Anyway, don't getconfused Tax planning Tax avoidance =Even if sometimes „tax planning” can be a cover for „tax avoidance”
- 14. is bending therules of the tax system to gain a tax advantage that Parliament never intended. Tax avoidance involves using tax reliefs for the purpose for which they were intended. Tax planning
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- 17. UK citizen What thiscompanies have in common?
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- 20. They really payit? Let’s find out!
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- 22. Revision Year: 2011 Uk Turnover Profitbefore tax Tax paid Tax as % of turnover
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- 25. United Kindom First opening:1998 Stores: 735 Sales*: ₤ 3bn *reported (Total Sales until year 2012) Tax paid: ₤ 8.6m Tax as % of sales: 0.3
- 26. United Kindom In thelast 5 years*, Starbucks paid in UK ₤ 0corporation tax *from 2007 to 2012
- 27. They report losses inUK, all financial reports to HM Revenue & Customs being this way US executives of the Seattle company claimed in telephone calls with investors, transcripts of which have been seen by the The Guardian, that the UK business was profitable while
- 28. The contradictions highlightlegal tax-avoidance tactics used by multinational companies by loading UK subsidiaries with debts from other parts of the business based in countries with lower tax thresholds
- 29. Admission of immoralpractice? After 5 years of not paying any corporation tax, Starbucks finally „woke up”! In 2013 they paid ₤10m, promising to pay another ₤10m in 2014.
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- 31. You are RIGHT is aCulturally Conditioned Response Morality So, whatever you say
- 32. By the way, Doyou know the last app released by Apple?
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