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Tax Justice Network, ActionAid, ChristianAid and SOMO, have published critical reports on aggressivetaxplanning structures (see, e . g ., James 2012 , ActionAid 2012 , Christian Aid 2013 , SOMO 2015 ). Even consumers have shown interest in the amount of taxes paid by corporations (see, e . g ., Bergin 2012 , Kleinbard 2013 ).
It can therefore be said that multinational enterprises are currently in the eye of the storm. Their tax planning practices are claimed to be too aggressive and this has led to a public outcry. Politicians have shared this public
accepting that how we understand a company may be decisive in how we see its responsibility to pay taxes ( Avi-Yonah 2006 ). As a topical theme, the aggressivetaxplanning of corporate taxpayers, especially of multinational enterprises, and the assessment of its impact on society has been of interest to researchers for some years (see e . g ., Shafer and Simmons 2008 ; Sikka 2010 ; Preuss 2012 ; Finér and Ylönen 2017 ). Some studies have been very critical of tax planning by corporations (see, e . g ., Ylönen and Laine 2015 ), while others have emphasized the
Hypercompetition is at the very center of modern economies. As a consequence, both states and enterprises have been heavily engaged in an amoral power game (Colonomos, 2005) based exclusively on strength where tax systems have a prominent role. An obscure fiscal war takes place firstly between states seeking to increase their attractiveness. On the other hand, firms fight against states to optimize their revenues. Therefore, the aim of this paper is to discuss the components and the implications of the competition between states expressed through the establishment of tax havens and the launch of merciless fiscal policies. At the same time, enterprises try to shape the existing laws in a manner that favors their interests, using also aggressive fiscal strategies.
There are significant losses in tax revenues across the European Union (EU). National governments lose billions of euros in the revenues from non-paid taxes and other illegal activities. The fight against aggressive tax planning, tax fraud and illegal activities is on the agenda of the EU, OECD and all the national governments. However, due to the size of tax losses it should not be treated just as tax evasion, but rather as tax terrorism! Therefore, the author has set criteria when tax evasion should be named as “tax terrorism” as well as designed the principles for tackling tax terrorism and other ways of non-payment of taxes. The tax evasion could be treated as “tax terrorism” in case of international evasion from taxes by organized groups of persons for criminal purposes as well as when it creates significant losses in government revenues. The term “tax terrorism” would have impact to communication and cause response of society and politics, therefore it would have more social and political consequences.
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Axel Hilling, Niklas Sandell and Anders Vilhelmsson
Aggressivetaxplanning and tax policy
Over the past years, the scholarly discussion on tax law has focused largely on aggressivetaxplanning ( Dourado 2015 ; Panayi 2015 ). “Aggressivetaxplanning” is not a legal term; it refers primarily to transactions whereby companies take advantage of discrepancies—arbitrage—between tax laws of different countries, thereby achieving a more favorable taxation than the comparable taxpayers who have no access to such tax-planning opportunities. Aggressivetaxplanning, then, is not a matter of evading the law, but
. Economic and Business Review for Central and South- Eastern Europe, 6 (4): 325-336.
Knuutinen, R. (2014). Corporate social responsibility, taxation and aggressivetaxplanning. Nordic Tax Journal, 1, 36-75. DOI: 10.1515/ntaxj-2014-0003 https://doi.org/10.1515/ntaxj-2014-0003
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Lanis, R. & Richardson, G. (2011). The effect of board of director composition on corporate tax aggressiveness
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