Essay, Finance and Accounting
Tax planning involves taking steps which minimise the tax liability of tax payer.
Tax planning involves taking steps which minimise the tax liability of tax payer. Use of off-shore locations has been a vital element of this planning. This problem was discussed in a recent OECD report titled ‘A Step Change in Tax Transparency which was presented to the G8 meeting in June 2013.
In the context of tax planning and tax avoidance you are required to answer the following questions:
1) Present arguments for and against tax planning and tax avoidance. 25 marks
2) Summarise the recently launched (last 2 years) important initiatives at the national and international level to deal with tax avoidance using cross-border facilities and differing tax regimes. 25 marks
3) Identify and discuss the circumstances in which these (mentioned in question 2 above) national/international efforts have the best chance of success.
4) “Let there be one international tax framework like the International Financial Reporting Standards and there will be no tax avoidance issues”. Discuss this statement. 20 marks
Presentation and format 10 marks