Executive Summary 4
Chapter 1: Introduction 5
1.2 Aims and Objectives 6
1.3 Research Questions 6
1.4 Rationale for the research: 7
1.5 Scope of research 7
1.6 Structure of Dissertation: 8
Chapter 2: Literature Review 9
2.1 Definition of Tax Avoidance 9
Chapter 3: Analysis and Discussions 10
Chapter 4: Conclusions 10
Chapter 5: Recommendations 10
I hereby take the opportunity to thank my friends who have provided me moral support in the completion of the dissertation. I am very thankful to my supervisor whose guidance and support was inevitable in successful completion of the research. The valuable guidance and precious time provided by my supervisor was imperative for completing the research effectively. I am also grateful to University of Bedfordshire for providing me the opportunity to conduct the research on the topic of avoidance of corporate taxation by transnational and multinational corporate. I am indebted to my colleagues who provided me mental support during tough times while completing the research. I also acknowledge my gratitude towards my parents and family who were always very supporting and motivating me in my academic endeavors.
I want to dedicate my research to my supervisor and my parents for their support during the completion of research.
The tax avoidance of the transnational and international corporate is emerging as a major corporate issue. The tax avoidance of corporate is also attracting the attention of public and tax shaming of the tax avoiding corporate is increasing. The various definitions of the tax avoidance by corporate will be ascertained. This research will analyze the reasons for avoidance of the tax by international and transnational corporate. The UK economy is also facing problems due to avoidance of the corporate tax by the multinational companies partly due to complex taxation structure of UK but majorly due to the international taxation systems that provide transnational companies to shift their profits between countries to reduce their taxation liabilities in UK. The report will also aid in identifying the steps which can keep a check on the issue of the corporate tax avoidance. The research will also analyze case studies on the corporate tax avoidance by transnational companies. The research will also identify the strategies for developing effective taxation system to inhibit corporate tax avoidance.
Chapter 1: Introduction
1.1 Research Background
Gruber and Rauh (2005) pointed that the taxation is used by the governments of various countries to raise the revenues for the expenditures. The financing of the governments by taxation has significant influence of the living standards of the citizen of country. The taxes paid by the corporate play an important role in the regulation of social and economic conditions and redistribution of the incomes. In the globalized and modernized economic conditions, the economic and political structures of the countries have become complex and the responsibility of the governments of the countries have increased. Hence, the tax payments by the citizens of the country and more importantly by the corporate in the country have wider implication and significance for the holistic development and social welfare of the country. Taxation is one of the most important sources of income for the government of Britain (Paul and Karen, 2001).
The avoidance of the corporate taxes by the transnational and multinational companies has resulted into loss of the revenues for the UK government. The public have also increased their concern on the non-payment of the corporate taxes. For instance Starbucks, Google, Amazon, Vodafone, Thames Water and Cadbury before acquisition by Kraft are the companies who have avoided their corporate taxes on the profits earned in their UK based business. Hence, it becomes essential to keep a check on the unethical