It is an initial step undertaken with a view to explore different factors of causes/reasons of tax evasion in Philippines. Income tax evasion affects the economy of the locale in which it happens and in addition upon the worldwide economy. The impacts of this wrongdoing may appear to be confined, yet as countries exchange and lead business with one another, the financial remaining of one nation will thus influence another. There are numerous explanations behind some economic activities to go unrecorded in the official statistics. Taxes are necessary to provide the services that individuals depend on.
Taxation The convergence of IFRS in India will not only affect the Financial Statements but also the tax liabilities would also get changed. Present scenario, Indian Tax laws do not recognize the Accounting Standards. To entertain immediate change in the Indian Tax Law is the major challenge faced by the Indian Law makers. 6. Fair Value Measurement IFRS uses fair value to measure majority of transaction in financial statements.
Hence, tax avoidance often takes place at the margins of the tax code, in areas where the code is ambi - guous and in need of interpretation. In areas where the tax administration decides with a certain degree of discretionary authority, the distinction between avoidance and evasion is blurred. This becomes even more relevant if countries change the tax regulations concerning tax loopholes retroactively. In many instances, the distinction between tax avoidance and tax evasion is clear only from the ex post perspective, ultimately a post-court perspective.5 For this reason, tax evasion and tax avoidance are usually treated jointly, despite
Tax payers evade taxes by manipulating accounts to give incorrect information about their incomes It causes inconvenience Direct taxes tend to be inconvenient as they involve some procedures in the filing in of the returns. Payment of direct taxes is painful to tax payers as they give some of their income as tax They are not imposed on all The tax imposition is imbalanced sectors such as the corporate sector tend s to be taxed heavily whereas sectors such as the agricultural sector is free of taxes They are arbitrary Direct taxes have no basis on which they are determined. If they are progressive, their rates have to be fixed in an arbitrary manner and if they are proportional, the burden is heavy mostly on the
Global pricing is much complex than the domestic pricing. There are many factors which are the causes of the complexity of the international pricing. These factors includes Governmental intervention, Greater market diversity, Price escalation in exporting,Fixed versus variable pricing, Retailers` strength with suppliers, fluctuations of the international currency, exchange rate , escalations in the pricing due to the variations in tariffs, associated risks with the involved difficulties in accessing of credit, price controlling and anti-dumping laws of the different countries, regulations on the transfer of pricing and different methods of payments. The international pricing involves many other factors in addition to the basic principles of the pricing like cost, demand, competition etc. considerations.
Domestic-currency and hedging give internationally active firms to reduce their exposure to exchange rate variations. Foreign exchange risk arises when the value of the investment fluctuates due to the changes in currency 's exchange rate. When the domestic currency appreciates against a foreign currency, profit or returns earned in the foreign country will decrease after being exchanged back to the domestic currency. Due to the somewhat volatile nature of the exchange rate, it can be quite difficult to protect against this kind of risk, which can harm sales and revenues. In general, organizations engaging in international finance activities can experience much greater uncertainty in their revenues.
Research objectives The purpose of this thesis is to test whether Mauritius is truly a platform for tax evasion and to what extent the measures that are being taken by the Government to combat this bad publicity are effective. The specific objectives of this study are: To understand the purpose and functioning of treaty arrangements Mauritius has with other countries throughout the world. To test the effectiveness of the measures to combat tax evasion. To test the knowledge of employees in the global business sector. Research questions To what extent employees understand the tax regime for global companies?
Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence
It was an explosive mix for any corporate entity which had over-borrowed and assumed too much maturity period or currency mismatches. The high risk nature of banking in distinction to fund management had risen from its high gearing and massive asset liability mismatches, and in particular, from its tendency to borrow for a short period and lend for even longer. The overdependence on banks in Asia was caused by their over-protection, as well as by the over-regulation of capital markets, and had also affected the Malaysian financial system. This had caused the under-development of non-banking financial institutions, capital markets, and risk management products,
CHAPTER TWO LITERATURE REVIEW 2.1 The Meaning and Concept of Tax Compliance Conceptually, tax compliance is a terminology that lacks universal acceptance in definition as it is shrouded in varied views and interpretations backed by un-precise tax laws making it complex and difficult term to accurately define. Roth et. al. (1989) defined tax compliance as filing all required tax returns at the proper time and that the returns accurately report tax liability in accordance with the tax code, regulations and court decisions applicable at the time the return is filed. This definition is central to the definitions provided by other researchers (see, Long and Swingen, 1991; Alm, 1991; Hasseldine and Li, 1999; James, 1999; James and Alley, 2004; and Devos, 2009) and a key point to note in all these definitions is the extent to which tax payers submit themselves to the dictates of the tax law.