Tax Evasion in the UK | Essay

Tax Evasion in the UK | Essay An Investigation Into Tax Evasion In The British Large Companies Abstract This project looks at the tax evasion in the British large companies and find out the reason of this problem. It aims to discover the methods to control it. As resources find, firstly, tax loopholes cause tax evasion. Secondly, tax is so high and effects large companies much. Companies hope to cut costs without paying tax. Thirdly, the leaders of companies can not realize they have duty to pay tax. Finally, the government ask companies to pay double tax which is unfair to companies. Therefore, British Large companies should raise the awareness of responsibility to pay tax. The Governemt should improve the tax law. The research was conducted by examining previous studies. Two cases study focus on tax evasion of Google and Amazon in the UK. The results show that British large companies have tax evasion problem. Companies use branch offices for transferring British tax money to other countries’ offices which is located at tax heaven. The leaders of companies even are proud of tax evasion. In conclusion, in the UK, tax evasion is quiet serious in the large companies. Whatever ethical and social system cause tax evasion problem. The government should prevent this situation by improving tax system and letting people raise the responsibility to pay tax. 1. Introduction Tax evasion is defined as an illegal behaviour that a person, organization or corporation purposely avoids paying true tax liability. Those caught evading taxes are generally subject to criminal charges and significant punishments (Investopedia, n.d.). Nowadays, with British economy and finance development, tax evasion has increased year by year. This area is important because lots of British companies, such as Google, Amazon, Starbucks and Apple, have tax evasion problem. Britain have turned into a tax evasion heaven that cheats itself in the process. The reason is the loopholes of tax evasion system. According to PCS, 90% of tax is effectively voluntary with just few staff to check suspect cases. The National Audit Office reported that HMRC has doubled the amount of tax debt written off in one year and due to its own mistakesrelatively. Labours record on chasing tax loopholes was depressing.In 2009, it set up the patent box – a vast new tax avoidance vehicle. This government s new enormous tax escape leak is the controlled foreign companies management system, allowing British companies to pay tax in the cheapest country they can find, and none when they bring profits back (Polly Toynbee, 2014). Furthermore, profit motivate companies avoid paying tax to save money for themselves.As hypothesis, because of profit, companies keep away from turning in tax to the government on time. In addition, the tax system has the leak so that companies have ability not to pay true tax.Therefore, this project aims to discover the reason of tax evasion and find the way to prevent this situation in the large companies in the UK. 1.1 Research Question Do the profit aims and the loopholes of tax system cause tax evasion? How to deal with tax evasion in the British large companies? 2. Literature review The reason of tax evasion in large companies in the UK. In this world, tax evasion is never ethical. It is illegal whenever the century. Companies and individuals all own a duty to the government to pay whatever taxes the state demands. There is no such thing that taxes are too high even though British resident always complain the level of price and taxes (McGee, 2012). However, in this century, tax evasion is such a normal phenomenon. There are some opinions about the reason of tax evasion in the large companies in the UK. Firstly, although the reforms of the tax structures improve year by year, the British tax system still has loopholes (ZodrowFuest, 2013). Therefore, companies can route around the laws to avoid paying tax. The loopholes cause shadow economy increases. Shadow economy is quite narrow. It does not need to take results and insights of other sciences into account. It is difficult to control. With shadow economy climbs, it attracts original tax system and creates competition for the official firms at the same time (Schneider Enste, 2003). Moreover, because of tax system loopholes, in multinational corporations, the extensivephenomenon of income shifting happens frequently. Multi-national and offshore companies have illegal market and inequitable competitive advantages. Tax system loopholes let overseas and offshore companies avoid finance acquiring, asset stripping companies and markets. The effects impact all tax system and supply and value chains (Nicholas, 2013). The offshore economy tends to be around us. Lots of trades are successful through the offshore economy. What is more, entrepreneurs’ corruption and government expropriation of private resources destroy the balance and interaction between tax and investment. The political structure can not use as effective tool for the original tax system (ZodrowFuest, 2013). Therefore, the tax system loopholes are continued to expand. Furthermore, Endemic avoidance relies on means legitimated by the tax system. Companies exploit tax differences within different places and tax regime and transfer profit to avoid tax. British companies use companies, trusts and partnerships to shelter earnings or assets. (Nicholas, 2013). Secondly, according to ThomasSowell (2012), tax cut for the rich. Tax effects rich companies greatly. Because the total amount of money saved by someone in the large companies is often larger than the total amount of money saved by someone in small companies. With the higher tax, the more money companies have, the more tax they need to pay. All People desire to have more money. By tax evasion, companies can save lots of financial revenue. Thirdly, leaders of companies think government does not give them or society tangible benefits and value. It wastes their paid tax money. So, companies do not want to pay tax to the government. Maybe, companies give money to charity that is better than paying tax to the government. The former can bring more social value and popularity to the companies (D’Souza, 2012).Fina lly, because the government asks British large companies to pay double tax, companies believe that it is unfair to themselves. Therefore, British large companies do not pay tax to the government (Baekdal, 2013). The approach for preventing from tax evasion In the UK, tax evasion situation is serious. Here are some methods to help to solve the problem. Firstly, British government should set law to limit or remove the legal standing of companies or ownership from jurisdictions with cannibalistic tax and secrecy regimes (Nicholas,2013). Secondly,the large companies tax standards need to be updated to prevent loopholes from being abused. Companies haveability to use new data and advanced technology to control fraud and evasion risks.The government has also set up a new centre of system within HMRC to enhance expertise forsolving offshore tax evasion (Gov, 2014). Thirdly, British companies should raise their ethical and legal responsibility to pay tax for developing British society and country. 3. Case Study Case StudyGoogle’s tax evasion Google’s current situation Google, as a large company, uses its dominant position for own economic goals with tax avoidance strategy escape financing of government and public infrastructure (Baekdal, 2013).From 2006 to 2011, although Google has 18 billion pounds revenue in Britain, the company reported only 16 million profit for taxes to British authorities (Reuters, 2013). In 2011, Google’s UK unit just paid six million pound to the Treasury and turned over of 395 million pound (Barford Holt, 2013). The reason of tax evasion in the Google Google operates its European branch companies out of approving tax jurisdiction on purpose. Google own the company’s non-US intellectual property rights in the tax haven of Bermuda. The leader of Google company believe that enterprise has the duty to shareholders to minimise its costs by avoiding paying tax (BBC News, 2012). The chairman of Google even said that he is proud of his company’s tax evasion scheme. As the report said that he even thinks the tax evasion of 2.5 billion pounds in Google is capitalism (Kumar Wright, 2012). In Ireland, Google has a branch office which should pays fee to isolated Dutch company. Google establish Dutch company purely for the purpose of reducing the taxes (BBC News, 2012). As Google’s executive chairman Eric Schmidt said that he does not agree on UK tax debate. He thinks that it is political decision instead of economical issues if the company must comply that the tax laws is changed by British system. It is not fair that com panies should pay more tax when the tax rate climbs up (BBC News, 2013). Therefore, The reason of tax evasion in Google company is that the holders are not conscious of having responsibility to pay tax for the government and society. It desires to reduce the costs in order to achieve their economic aim by avoiding paying tax. Case study Amazon’s tax evasion Amazon’s current situation According to the report given by the Guardian, Amazon earned more than 3.3 billion pounds profit in the UK last year without paying any corporation tax to the tax authorities. In 2011, Amazon, which has earned about 3.35 billion pounds in the UK, only reported a tax expenditure of about 1.8 million pounds (BBC News, 2013). Now it is under investigation by the UK tax office. The reason of tax evasion in the Amazon The tax structure loopholes are used by Amazon company. Luxembourg country is well known as tax heaven. The tax rate in Luxembourg is much less than the tax rate in Britain. According to the report, the goal that Amazon company establish deliberately branch office in Luxembourg is to round around the British tax laws. Tax system loopholes are used by Amazon to transfer billions of pounds profit from British customers to Luxembourg. Then, Amazon’s profit is used Luxembourg’ s law to pay the tax which is much less than paying in the UK. This behaviour aims to payinvisibleBritish tax (BowersWintour, 2013). Under current laws, Amazon has 4.2 billion revenue annual years in the UK, which rely on a network of eight grand warehouses across Britain by routing through Luxembourg. (Bowers Wintour, 2013). According to Ibtimes website (2014), Amazons accounting strategies have been attacked by John Lewis and other high street stores, which they think give Amazon an unfair advantag e by using the Luxembourg loophole to shield its profits from the tax authority in the UK. 4. Discussion According to the resources, in the UK, tax evasion in the large companies is known as the fault of the companies. There are three reason of tax evasion. The first is that tax system has loopholes which is used to transfer the profit from high tax rate place to low tax rate place. The Second is the leader of companies may not realize they have responsibility to pay tax to the government and society. They just desire to achieve the economic goal. The third is that tax rate is so high and tax effects the rich more. As cases of Google and Amazon show these reasons have been proved. The leader of Google was proud of tax evasion and desired to reduce costs to achieve their economic goal. Amazon company used branch offices which is in tax heaven country to transfer revenue for avoiding paying tax. However, there has other agreement that government is greedy to ask companies to pay double tax. Generally speaking, because government put tax money on social infrastructure and companies have a lot revenue, companies should raise the awareness of duty to pay tax. Moreover, government is probably the one that should improve the tax system and establish the law to punish these illegal attitudes. Furthermore, comparing to other countries, Tax authority should control tax rate and keep balance between each area in order to prevent companies to transfer profits to branch offices in other countries. 5. Conclusion As resources found , in current century, tax evasion situation is much serious in the large companies in the UK. There are four reasons of tax evasion. Firstly, although the reforms of the tax structures are developed year by year, the British tax system still has loopholes. Therefore, companies can route around the laws to avoid paying tax. Companies use branch offices for transferring British profits to other countries which is located at tax heaven. Secondly, tax effects rich companies much. The companies are more rich, the tax money they should pay to the government and society. Companies desire to save costs for economic goal. Thirdly, leaders of companies might not have sense of responsibility. Two cases of Google and Amazon have proved the most of people believe that tax evasion should due to British large companies themselves. However, a few people think government causes tax evasion because it asks companies to pay double tax which is unfair to companies. According to discus sion, companies have responsibility more than the government because the government puts tax money to society with developing medicine system , charity and others. 5.1 Recommendations According to the research, British large companies should be enthusiastic with paying tax to the government and society. .In addition, the government might better to develop British tax laws to control tax system loopholes. In the future, with society, economy and technology development, the situation of tax evasion would be changed. British people should continue to research tax evasion. 5.2 Limitations and scope for further research As the place and time limited, research was limited in two British large companies in recent years. If the research carried out in several companies and researched the situation of tax evasion in 10 years, it could has more accurate results. (Words: 2015) 6. References Amazon Facing Fresh UK Tax Avoidance Row. (2014). Retrieved from http://www.ibtimes.co.uk/amazon-facing-fresh-uk-tax-avoidance-row-1449978 Amazon UK paid  £2.4m tax last year, despite  £4bn sales. (2013). Retrieved from http://www.bbc.co.uk/news/business-22549434 Baekdal, T. (2013). The Other Side of Amazons, Apples and Googles Tax Evasion. Retrieved from https://www.baekdal.com/opinion/the-other-side-of-amazons-apples-and-googles-tax-evasion Barford,V. Holt, G. (2013). Google, Amazon, Starbucks: The rise of tax shaming. Retrieved from http://www.bbc.co.uk/news/magazine-20560359 Bowers, S. Wintour, P. (2013). Amazon told: time is up for tax avoidance. Retrieved from http://www.theguardian.com/business/2013/jul/19/oecd-tax-reform-proposals-amazon D’Souza, J. (2012). Terrorist Financing, Money Laundering And Tax Evasion: Examing The Performance Of Financial Intellgence Units. Boca Raton, Fla: CRC. Factbox: Apple, Amazon, Google and tax avoidance schemes. (2013). Retrieved from http://www.reuters.com/article/2013/05/22/us-eu-tax-avoidance-idUSBRE94L0GW20130522 Googles Eric Schmidt perplexed over UK tax debate. (2013). Retrieved from http://www.bbc.co.uk/news/business-22676080 Kumar, N. Wright, O. (2012). Google boss: Im very proud of our tax avoidance scheme. Retrieved from http://www.independent.co.uk/news/uk/home-news/google-boss-im-very-proud-of-our-tax-avoidance-scheme-8411974.html Mc Gee, R. W. (2012). The Ethics Of Tax Evasion: Perspectives In Theory And Practice. New York: Springer. Nicholas, C. (2013). Twelve steps to stop tax avoidance. Retrieved from http://www.newstatesman.com/business/2013/09/twelve-steps-stop-tax-avoidance Reducing tax evasion and avoidance. (2014). Retrieved from https://www.gov.uk/government/policies/reducing-tax-evasion-and-avoidance Schneider, F. Enste, D. H. (2003). The Shadow Economy: An International Survey. Cambridge; New York: Cambridge University Press Sowell, T. (2012). Trickle Down Theory And Tax Cuts For The Rich. Stanford, Calif: Hoover Institution Press Starbucks, Google and Amazon grilled over tax avoidance. (2012). Retrieved from http://www.bbc.co.uk/news/business-20288077 Tax Evasion. (n.d.). Retrieved from http://www.investopedia.com/terms/t/taxevasion.asp Toynbee, P. (2014). This farcical tax system is cheating us out of billions.  Retrieved from http://www.theguardian.com/commentisfree/2014/jul/29/farcical-tax-system-cheating-billions-chase-avoiders Zodrow, G. R. Fuest, C. (2013). Critical Issues In Taxation And Development. Cambridge, MA: MIT Press.

TBL approach

Three stages could be involved in this cycle of continuous improvement, which tend to build on each others over time. These are Compliance: Many enterprises will decide to adopt the TUB approach in order to simply comply with the buyers' expectations or local regulations, with aim of retaining their â€Å"license to operate† in the face of buyers' demands or government inspections.Efficiency: With time or sometimes in parallel with the pressures to comply enterprises will come under pressure to improve performance and they will use this pressure, handled through a TUB approach, as a driver for cost savings, productivity improvements and quality enhancements focusing on process efficiency and resource utilization. This option offers a mix of cost saving and productivity improvements.Differentiation: Later on the enterprises involved for sometime In the TUB process thought of using the TUB approach strategically, aiming at strengthening their competitive position by moving them from being â€Å"price takers† to being â€Å"price setters† Criteria for selection of industries: The enterprises are Seems (Small and Medium scale Enterprises) Significant direct or indirect exporter The existence of at least some management capacity and the availability of an information system Significant level of Interests shown by person within the enterprise with a track record of leadership or Innovation and the authority(CEO/ Chairman/Plant manager) to sustain an Initiative such as TUB In the face of competing pressures A clear potential for Improvement Likelihood of effect arising from changes at the selected enterprise Basic stages of any sustained TUB process: The basic stages of any sustained TUB process Includes Enrolment:Being prepared for to â€Å"sign up† for the program In the beginning Application: Being prepared to commit company's resources especially staff time to Investigating company's performance Implementation: Being prepared to Invest resources In Implementing options arising from the TUB process Maintenance: Being prepared to sustain over the long term, the Minimal gains made as a result of Implementing Improved options CONTINUOUS IMPROVEMENT By businesswoman Later on the enterprises involved for sometime in the TUB process thought of information system Significant level of interests shown by person within the enterprise with a track record of leadership or innovation and the authority(CEO/ Chairman/Plant manager) to sustain an initiative such as TUB in the face of competing pressures A clear potential for improvement The basic stages of any sustained TUB process includes Enrolment: Being prepared for to â€Å"sign up† for the program in the beginning Application: investigating company's performance Implementation: Being prepared to invest resources in implementing options arising from the TUB Being prepared to sustain over the long term, the initial gains made as a result of implementing improved options

Earths Magnetosphere Essay

The Earth is an enormous magnet, and its magnetic power extends distant into space. It has south and north magnetic poles that reverses at uneven periods of hundreds of thousands of years. The magnetic field of the Earth reaches 36,000 miles into space, and it is surrounded in an area described as the magnetosphere (The Earth’s Magnetic Field p. 1). Magnetosphere is the region contiguous to the Earth where the latter’s magnetic field dominates. The other planets in the universe including the sun have magnetospheres; however, of all the rocky planets, the Earth has the strongest magnetospheres (The Earth’s Magnetic Field p. 1). The magnetosphere averts the sun’s particles that are carried in solar wind from hitting the Earth. However, a number of particles from the solar wind can still penetrate the magnetosphere. The aforesaid particles that penetrate from the magnetotail pass through the Earth and generate the Aurora Borealis light exhibitions, and possibly more spectacular, magnetic storms, which can blow out communication and power systems on the planet. Further, the said particles are accountable for various wonderful natural occurrences such as the natural radio emissions that produce the whistler waves and lion roars (Magnetosphere p. 1). The Earth’s magnetosphere is composed of magnetic flux and charged particles. It is extremely active, and has a number of key components, such as the radiation belts, plasmasphere, lobes, plasmasheet, magnetotail, magnetosheath, bow shock, and numerous electric currents (Magnetosphere p. 1). The magnetosphere changes regularly, even spinning its course every few thousand years. Regardless of its low density, the solar wind is strong enough to cooperate with the Earth’s magnetic field to form magnetospheres. As the ions in the solar plasma are charged, they act together with these magnetic fields, and the particles of the solar wind are brushed away around planetary magnetospheres. The particles circulate and move around the magnetosphere and even produce storms. The contour of the Earth’s magnetosphere is the direct consequence of being blasted by solar wind. Solar wind reduces its sunward side distance of merely 6 to 10 times of the Earth’s radius or some 67,000 kilometres (The Earth’s Magnetosphere p. 1). On the borders, or 90 degrees from there, the distance is approximately 15 Earth radii, and about 25 Earth radii in radius as the borders continue to move towards the cylinder (Stern p. 1). A supersonic shock wave is produced sunward of Earth to some extent like a sonic boom. On the other hand the precise length of the night-side of the Solar wind is unknown; however, it is estimated that the nigh-side magnetosphere extends to 1,000 times the radius of the Earth (Magnetosphere p. 1). The Earth’s magnetosphere has no clear borders during midnight. In fact, what occurs is that exceeding 50 to 80 Earth radii the solar wind breaks into the magnetotail, so the substance is predominantly solar wind, although the magnetic field is still that of Earth. It persists like this for no less than 220 Earth radii (Stern p. 1). Nevertheless, when the force of the solar wind increases, the perimeter shifts inwards, which erodes the magnetic field by process of reconnection. Therefore, a few occasions every year the perimeter overtakes satellites in synchronous orbit, at 6. 6 Earth radii (Stern p. 1). In contrast, resembling in 1999 when the solar wind was exceptionally profound, the noon-side perimeter went out exceeding 20 Earth radii (Stern p. 1). Our planet is bordered by an intense battle zone that commences only a few hundred kilometres above us and until now most of us are completely unaware to the fact. Our innate protection from this assault is the Earth’s magnetosphere; an imperceptible bubble that is surrounding our whole planet. Performing like a cosmic punch-bag the magnetosphere is subjected to groups of solar wind charging away from the sun at supersonic paces and continuously bombarding this protective bubble. For that reason, life on Earth has developed underneath the shelter of this magnetosphere. Works Cited â€Å"Magnetosphere. † 18 November 1996. University Corporation for Atmospheric Research. 25 September 2008 . Stern, David. â€Å"Get a Straight Answer. † 28 September 2004. NASA. 25 September 2008 . â€Å"The Earth’s Magnetic Field. † 3 June 2003. University Corporation for Atmospheric Research. 25 September . â€Å"The Earth’s Magnetosphere. † 28 August 2008. Cosmicopia. 25 September 2008 .

Ciswoman/Cissexual Woman A Definition

Ciswoman is shorthand for cissexual woman or cisgender woman. It defines a non-transgender woman. Her assigned gender is female, and her assigned female gender is more or less consistent with her personal sense of self. What Is Assigned Gender?   An individual’s assigned gender is what appears on her birth certificate. A doctor or midwife delivered her and stated her physical gender or sex at the time of birth. The individual is forevermore a male or female based on this assessment – unless, of course, she takes legal steps to change it. Assigned gender is also referred to as biological sex, natal sex, or designated gender at birth.   Transwomen vs. Ciswomen   Transwomen is a shorthand term for transgender women. It defines women who were initially assigned a male gender but have a female identity. If you identify as a woman and youre not a transgender woman, youre a ciswoman. Gender Roles   Cisgender and transgender identities  are grounded in gender roles, but  gender roles are socially constructed and gender is not a very clearly-defined concept. An  argument can be made that nobody is completely cis or trans, that these are relative terms representing an individuals experiences of what gender is. Ashley Fortenberry, a transwoman, explains,  Gender cannot be defined by anyone other than the individual. Gender is personal and is based on ideas and characteristics that usually pertain to a specific sex. The simple fact is that everyone has characteristics of the opposite gender. When Assigned Gender Is Wrong Of course, doctors are human and, as such, they can make mistakes. A baby might have an undiagnosed  intersex condition, making it difficult or impossible to identify her correct  gender at a glance. More commonly, a baby does not grow up to identify with the gender assigned to him or her at birth, a condition known as gender dysphoria.   The American Civil Liberties Union indicates that 18 states and the District of Columbia have passed anti-discrimination laws protecting transgender and transsexual individuals. At the local level, approximately 200 cities and counties have done the same.   The federal government has been slower to get on board  with this type of legislation, although a federal district court in the District of Columbia has ruled that discrimination against employees who transition  to a different gender is covered by Title VII of the 1964 Civil Rights Act. The U.S. Attorney General supported this decision in 2014. Public Restrooms Several states have passed or are in the process of passing legislation to  either allow or disallow transgender individuals from using restrooms designated for the gender they identify with as opposed to their assigned gender. Most notably, the U.S. Justice Department filed a civil rights lawsuit against the state of North Carolina in 2016 to block House Bill 2, which requires that transgender individuals use restrooms for their assigned genders. The Bottom Line   Ciswomen dont share these problems because they identify with their assigned gender. Their designated gender at birth is who they are and who they consider themselves to be. Thus Title VII, which protects against sexual discrimination, protects them outright.   Pronunciation: Siss-woman Also Known As: Cissexual woman, cisgender woman, cisgirl, natural-born woman (offensive)