Introduction
Tax paid is, arguably, the strongest indicator of a corporation’s social responsibility that there is.
I hope no major corporation evades tax. Tax evasion is illegal. I think that without exception major corporations avoid tax.
What tax avoidance is
Tax avoidance is legal. Tax avoidance exploits the loopholes in tax law to ensure that less tax is paid than those creating that legislation expected. This can be done in individual states, where, however, it is relatively easy for governments to combat it. For multinational corporations there is a much more lucrative opportunity for tax avoidance. That comes from exploiting the loopholes that exist between the laws of different states.
The opportunity for international tax avoidance is based on three variables. The first is the number of companies making up a multinational corporation: the more companies there are in a group the easier it is to avoid tax.
Second is the willingness of the multinational corporation to use tax...
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