Group 2: Tax Avoidance of Multinational Corporations In a Nutshell

  Why  MNCs HAVE a responsibility to pay tax? I.  Commit Corporate Responsibility     First of all, paying tax into public finances is clearly part of how business contributes to society, giving back to society while taken from it, in other words. As we all know, ​taxes provide essential public revenues for governments to meet economic and social objectives​, those can contribute to improving public living standards. For example, the government can invest more expenditure on education and provide free education to the students and improve their upward mobility.      Once the country meets its basic expenditures, it will have a surplus to solve other important but non-emergency infrastructure like setting up community centres, so that folks in poor countries can have the right to enjoy social and entertainment activities, and further improve their living standards.  II.  Tax avoidance is legal but “morally wrong”     As we aforementioned, unlike the tax evasion, tax avoidance is a legal

  According to the BBCIncorp website  : Tax avoidance is totally legal Tax avoidance lowers your tax bill by structuring your transactions so that you reap the largest tax benefits.  Tax avoidance is completely legal—and extremely wise. Tax avoidance is the act of minimizing tax liability within the limits of the law or without breaking the law . In other words, taxpayers can use legitimate methods to reduce the amount of tax payable in association with their financial activities. Such methods to allow taxpayers to avoid paying tax to the government may include the followings: Using tax deductions for decreasing business expenses and business tax bill Delaying the payment of tax until a later date with an appropriate tax deferral plan Taking advantage of tax credits for legal purposes like business purchases, benefiting the company’s employees for sick leave and family leave Sheltering revenue from tax liability through the establishment of employee retirement plans. Judge Learned Hand

  Question 1. Food and Globalization: Coffee/ Chocolate   Group 1 Hyperlink Wong Yuk Ping/ Hung Tak Chun/ Cheung Ka Wai     • How does globalization affect their industries or the nature of their business? • Who are the stakeholders? • Which Multi-national Corporations are involved? • Have the farmers receive a fair return for their labor? • What has been done/should be done to address global justice here? Question 2. Tax Avoidance of Multinational Corporations    Group 2 Hyperlink Chan Siu Fung Rico/ Lai Wai Ching •  Explain the link between corporate social responsibility and corporate tax avoidance. • Explain the idea of  tax avoidance, especially the issues of base erosion and profit shifting (the basic tools of tax avoidance) • Do the MNCs have a responsibility to pay tax to their “home countries” (or countries of origin) and to countries where they make profits? Question 8. Water Scarcity & Plastic Bottles     Group 3 Hyperlink Li Guanrui/ Wang Yuxiang/ Zhang Yichi • How are p

BEPS in Hong Kong  I. Tax Heaven? " TAX HEAVEN " generally refers to countries or regions with very low tax rates , or even completely exempted from taxes . This has become a treasure of many individuals or business organizations. It can be tracked back to1960s. Due to their confidentiality, tax exemption, universally applicable loose and complete British and American laws and regulations, they spread rapidly after the 1990s and become today’s paradise. II. Hong Kong as a Tax Heaven? Lesser Tax Types The only taxes payable in Hong Kong are: Profits tax : all profits earned by operating an industry, profession or business in Hong Kong are taxable. Salaries tax : actual taxable income in the tax year is calculated at progressive tax rates Property tax : for rent-collecting owners, if the property has rental income during the tax year, the owner must file a tax return. Stamp duty : taxes levied on written documents, written documents related to the sale of real property located