Group 2: Tax Avoidance of Multinational Corporations In a Nutshell

  Ppt P.4  Global Corporate Tax Rate Level in Perspective -   McCarthy, N. (2016):"Global Corporation Tax Levels In Perspective". retrieved from https://www.statista.com/chart/5594/global-corporation-tax-levels-in-perspective/ Ppt P.9   Hong Kong traits as Tax Heaven -         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 in Hong Kong are also taxed. -         Import and Export duties: customs duties levied on goods entering and leaving the country, passenger luggage, postal items and gifts. Ppt P.9   Corporate Tax Haven Index - 2019 Results -  

  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