Scribd Logo
Upload

Welcome to Scribd!

  • Tax Avoidance

    Uploaded by

    Guna sai Chowdary
    16 views25 pages
    Tax avoidance uses legal loopholes to reduce tax payments, unlike tax evasion which is illegal. The document discusses types of taxes and defines tax havens as countries that impose little or no tax to attract businesses. It summarizes two famous tax avoidance cases: the MasterCard tax saga where MasterCard avoided Indian taxes using subsidiaries in tax havens like Mauritius, and the Pepper loophole where Vietnam dumped pepper in India via Mauritius to avoid import duties. The document provides background on how companies benefit from tax havens and double taxation avoidance agreements.

    Original Description:

    tax avoidance

    Original Title

    tax avoidance

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Tax avoidance uses legal loopholes to reduce tax payments, unlike tax evasion which is illegal. The document discusses types of taxes and defines tax havens as countries that impose little or no tax to attract businesses. It summarizes two famous tax avoidance cases: the MasterCard tax saga where MasterCard avoided Indian taxes using subsidiaries in tax havens like Mauritius, and the Pepper loophole where Vietnam dumped pepper in India via Mauritius to avoid import duties. The document provides background on how companies benefit from tax havens and double taxation avoidance agreements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    16 views25 pages

    Tax Avoidance

    Uploaded by

    Guna sai Chowdary
    Tax avoidance uses legal loopholes to reduce tax payments, unlike tax evasion which is illegal. The document discusses types of taxes and defines tax havens as countries that impose little or no tax to attract businesses. It summarizes two famous tax avoidance cases: the MasterCard tax saga where MasterCard avoided Indian taxes using subsidiaries in tax havens like Mauritius, and the Pepper loophole where Vietnam dumped pepper in India via Mauritius to avoid import duties. The document provides background on how companies benefit from tax havens and double taxation avoidance agreements.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 25

    Om Sri Sai Ram

    Tax avoidance
    What is Tax?
    Tax is a financial charge or other levy imposed upon a
    tax payer by a state to fund various public expenditure

    Direct Tax
    Indirect Tax
    Types of Tax

    Direct taxes Indirect taxes


    income tax sales tax
    capital gains customs duty
    corporate tax excise duty
    Tax evasion

    Tax evasion is not paying the taxes when they are actually due
    which is absolutely illegal
    Tax avoidance
    Tax avoidance is basically finding
    the loop holes that exempt you
    from paying taxes
    and it is not strictly illegal.
    Some Huge Avoidances

    The Double Irish Dutch Sandwich

    The Master Card Tax Saga

    Vodafone Tax Saga

    Pepper Loop
    Hole
    A Tax Heaven
    But out of these

    5
    I am going to discuss only

    2
    The Tax
    Heavens
    What is Tax Heaven and
    Offshore Finance
    Where are these tax heavens?
    Tax heavens
    Delaware
    The British Virgin Islands
    Bahamas
    Niue
    Jersey
    Panama
    Mauritius
    Why would a country,

    ?
    or state,
    decide to become a
    tax haven.
    a ny
    o mp
    ell c
    Sh
    Why
    Who
    What
    How do companies
    benefit from tax heavens?
    The MasterCard Tax Saga
    DTAAs

    Double Taxation Avoidance Agreements


    Authority for Advance Rulings (AAR)
    A quasi judicial body to offer a binding ruling on the matter.

    MASTERCARD INTERFACE
    PROCESSORS (MIPs)
    Equalization levy-
    2%
    The Pepper Loop
    Hole
    credits

    https://www.icij.org/investigations/panama-papers/what-is-a-tax-haven-offshore-finance-explained/
    https://finshots.in/archive/tax-havens-and-why-they-exist/
    https://www.icij.org/investigations/panama-papers/20160509-beyond-panama-secrecy-jurisdictions/
    https://www.internationaltaxreview.com/article/b1fydc2ww679dq/mastercard-defends-its-asian-operations-
    from-indias-pe-claim
    https://economictimes.indiatimes.com/news/economy/finance/no-equalisation-levy-for-mastercard-apac/ar
    ticleshow/77619902.cms
    https://finshots.in/archive/the-mastercard-tax-saga/#
    https://finshots.in/archive/the-pepper-loophole/
    https://www.thehindu.com/business/dumping-by-vietnam-hits-indian-pepper/article33049132.ece
    https://www.newindianexpress.com/cities/kochi/2018/aug/05/needed-prop-for-pepper-price-1853383.html
    Jai Sa
    Ram

    You might also like