Researcher Maya Forstater considers a recent Oxfam report which highlights the problem as to what constitutes corporate tax avoidance.
Reckitt Benckiser (RB) maker of household products from condoms to stain removers is the latest company to come under fire for tax avoidance. Oxfam published a report on 13 July (bit.ly/2vgFjE5) saying the company has been ‘making tax vanish’ by shifting profits to its regional hubs in the Netherlands and Dubai. The company refutes this saying that its group structure is designed to serve different markets most effectively. RB says that in 2016 the group’s overall effective tax rate was 23% putting it in the middle of the pack amongst its peers. Furthermore it has published tax principles which commit the company to ‘paying tax where value is created’ (bit.ly/2gQ5cIy).
If we are to move beyond this familiar cycle of criticism and rebuttal...
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Researcher Maya Forstater considers a recent Oxfam report which highlights the problem as to what constitutes corporate tax avoidance.
Reckitt Benckiser (RB) maker of household products from condoms to stain removers is the latest company to come under fire for tax avoidance. Oxfam published a report on 13 July (bit.ly/2vgFjE5) saying the company has been ‘making tax vanish’ by shifting profits to its regional hubs in the Netherlands and Dubai. The company refutes this saying that its group structure is designed to serve different markets most effectively. RB says that in 2016 the group’s overall effective tax rate was 23% putting it in the middle of the pack amongst its peers. Furthermore it has published tax principles which commit the company to ‘paying tax where value is created’ (bit.ly/2gQ5cIy).
If we are to move beyond this familiar cycle of criticism and rebuttal...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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