Tuesday, February 18, 2020

Tax Havens or Offshore Financial Centre Essay Example | Topics and Well Written Essays - 1500 words

Tax Havens or Offshore Financial Centre - Essay Example in Europe, Hong Kong and Singapore in Asia, and various Caribbean island nations in the Americas.† (2004: p 2) The study makes a comparative analysis of the tax haven regions with heavy tax zones to project the differences economies examine in respect of laving taxes on the companies and firms. The present study has also been supported by the literature relevant to the topic of the research. The research also contains theoretical framework in its fold that is helpful in elucidating the topic under study. Different economies of the world at large have offered a variety of incentives to the corporations, organisations, and firms so that investment can be made within their economic set up, and economy could observe an imperative boost in the state of perfect competition created all over the globe in the aftermath of globalisation. The UK, USA, the UAE and other countries have established offshore centres for the local, national and multinational firms and brands, where the firms of sound reputation are offered considerable concessions in taxes and tolls, which encourages more and more firms make investment under rules and regulations designed by the governments for the offshore centres. â€Å"According to the Organisation for Economic Co-operation and Development†, Almeida submits, â€Å"international tax competition is lowering tax rates and making government expenditure more efficient worldwide.† (2004: p 2) Though tax havens do not exist in China and Germany in their t rue definition, yet there exist several low tax authorities in many countries of the world. These include Italy, the USA, Canada, China, Germany, France, Australia and others. â€Å"About a quarter of US and UK FDI†, Dharmapala notices, â€Å"is located in tax havens. By way of comparison, tax havens are home to only 0.7 per cent of the worlds population when havens are defined as in DH (2006), or just 0.2 per cent when using the OECD definition.† (2008: p 4) Since low tax rates leave indelible

Monday, February 3, 2020

Review of Accounting Ethics Essay Example | Topics and Well Written Essays - 1000 words

Review of Accounting Ethics - Essay Example Accounting ethics, which are set by the International Accounting Standards Board (IASB), and the Securities and Exchange Commission (Audi, 2009). The ethics are contained in the accounting principles that dictate the way businesses should account for their sales, profits, and costs. The principles are known as the International Financial Reporting standards, and these govern mainly public organizations, which are required to publish their annual statements. In the last decade, there has risen cases of bleach of accounting ethics, and this raised questions among investors concerning the effectiveness of the business environment (Kushniroff, 2011). The cases involved organizations such as Enron, Tyco, WorldCom, and Yahoo among others. The rise of these cases triggered the implementation of several regulations in the accounting sector, which include the requirement for accountability and the involvement of the community in dealing with cases that concern bleach of ethics. The accounting environment requires state corporations to reveal their annual statements to the public through the media. The accounting boards require companies also to employ internal and external auditors to verify the annual statements. Business stakeholders such as investors and shareholders are now more aware of business ethics than they were in the last decade. This indicates that the business environment and regulations are conducive for ethical behavior (Kushniroff, 2011). Those who break the rules are individuals who are mainly interested in making personal gains rather than companies. 2. Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach. Tyco is a company that offers fire fighting and prevention equipments to industries such as banking, transportation, health care, and marine in over fifty countries in the globe. Kozlowski, the chief Executive of the Company in 2002, bleached the accounting prin ciples of the firm by assigning himself illegal bonuses worth six hundred million dollars. The executive also used the company’s finances personally by purchasing expensive jewels and organizing private parties (SEC, 2002). The company suffered the loss of finances that were used by the executive to satisfy his personal needs. Tyco also wasted finances when following up the case against the executive; this money would have been used more efficiently had the case not arisen. The organization also lay off numerous workers. These consequences led to the decline in the company’s sales and profits that consequently reduced price of the firm’s stock (Kushniroff, 2011). 3. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment. The case against the CEO of Tyco company was brought to light by Robert Morgenthau, a Manhattan District Attorney in 2002 (SEC, 2002). The attorney discovered the fraud while he was investigating cases of tax evasion against Kozolowski. The investigation of tax evasion had been ordered by the Securities and Exchange Commission, which had discovered that Tyco was settling personal taxes for Kozolowski. Robert disclosed the fraudulent statements that he discovered in the company’s books to the SEC, which then launched further investigations. The management of the company had failed to cover personal expenses with their salaries. The investigation