Saturday, November 11, 2017

Tax Avoidance Nudge of the day

In the backdrop of the Paradise Papers which draws attention to the pervasive nature of tax avoidance strategies by the large corporates, Merryn Somerset Webb writes in FT,
In the meantime, if I were in charge, I would amuse myself by forcing all companies operating in the UK to list in their annual report how much tax they would pay in the UK if they were to simply subtract their UK-based expenses from their UK-earned revenues (no allowances and no profit shifting included) and how much they actually pay. It’s a small thing — but rather like forcing publication of pay ratios and gender ratios it might concentrate minds.
Talk about nudging to curb tax avoidance. Small step, but may be very useful, as she says, to "concentrate minds" and generate popular indignation.

And very nice illustration of corporate and individual tax avoidance strategies by Gabriel Zucman in Times.

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