Question

A recent survey asked: Is it morally wrong for corporations to use tax havens? Its results: Most said yes. See http://environicsresearch.com/insights/nine-ten-canadians-think-morally-wrong-canadian-corporations-use-tax-havens-new-poll/. Delving deeper into the issue of tax avoidance, you will go beyond the news release. You will examine the polling data, not just the news release. You will round up the news coverage of the survey results. You will gain a sense of the public debates of tax avoidance in Canada. You will learn from relevant studies on tax justice in civil society by think tanks, governments and academics around the world. Making good use of your research, you will write a 100-word note starting with the following: It’s morally wrong for Canadian corporations to use tax havens because …. That is, you will start by completing the sentence and then you will make your most compelling argument in your submission. You only have 100 words so make one compelling argument and make it well.

Answer 1

It is normally wrong for Canadian companies to use tax havens because it deprives the government of Canada from Revenues and it's people from good employment opportunities.

As more corporations will set up business in the offshore areas where tax rates are less than Canada such as Cayman Islands etc. Which won't require much reporting on their part and they don't have to pay bulky taxes. As per a recent survey more than 90% of Canadian population believes that it's wrong to use tax havens which is yet not illegal and it results in tax avoidance.

According to Paradise paper leaks which is the world's second biggest leak after Panama leak in 2016. They detail how some of the world's biggest companies like Nike, Apple and indivuals like Queen Elizabeth use tax havens to avoid bulky tax payments.