The use of tax havens and tax avoidance is an international problem affecting large parts of the world. However, the consequences of the lack of tax or low tax payments are mostly seen in developing countries. The report is based on the case Sweet Nothings, with a study of the multinational corporation Zambia Sugar and their lack of legitimate tax payment. Due to the lack of stability and financial resources in the tax authorities, the Zambian government has failed to implement and review the tax system. At the same time, the government offers tax breaks to attract foreign investors to the country, which have increased the inequality among the country and the multinational corporations. This report examines which role the Zambian public and social sector plays in making tax havens and tax avoidance possible. This indicates the challenges Zambia faces in relation to corruption, state authorities and the dependence to the developed countries. Further on, the case presents, which methods are applied in the use of tax havens and how globalization has affected this. Furthermore, the report discusses whether the multinational corporations should be social responsible and how this can equalize the tax obligations. Eventually, the report suggests possible global participants and solutions for the future. The analysis has revealed that Zambia is missing out on large sums of tax payments that could be used to create sustainable growth and development in the society and thereby increase the opportunity of improved healthcare and educational systems.
|Uddannelser||Basis - Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis|
|Udgivelsesdato||20 dec. 2015|
|Vejledere||Jacob Dahl Rendtorff|
- Tax havens