Tax Havens: Are we going to do something?

Apple’s tax evasion has been among the most recent headlines. There is a good reason behind it, this topic raises questions that should not remain unanswered. Is anything going to be done about big corporate companies stashing away profits in offshore accounts to avoid paying taxes? This is not the first time a big corporation have been caught on tax evasion charges. Companies like Amazon, Starbucks, UPS and Coca-Cola are among those who have been implicated in tax avoidance.

Why do these corporations keep doing it? Currently, tax avoidance is generating serious attention and has potential to hurt these corporations. Clearly, there is a big risk to tax avoidance but it does not seem big enough. The case of Apple shows that even the biggest, most prominent and wealthy corporations in the world choose to take the morally-questionable route of tax evasion. Why do I say “morally” questionable? It is because legally speaking there is a loophole, making the practice of tax evasion relatively easy and takes out criminal responsibility. What does this say about the state of corporate social responsibility in some of the wealthiest countries in the world.

Apple is not the first example of a big corporation evading taxes. Yet, the culture does not seem to change. Is the case of Apple big enough to finally do something about it? Or is it one of those cases that generate lots of attention for a little while only to have people forget about it and move on? This is the narrative that needs to be considered. Unless something is being done about tax evasion, there will be new cases of corporations doing it. Ultimately, it matters because it exposes the nature of our societies, countries and cultures. Currently, we are living in the state where regular, hard-working people pay close to half of their earnings in taxes, while wealthy companies pay less than a percent of their profits.

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