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By Oliver R. Hoor and Georges Bock, KPMG*
Of late, multinationals have been criticised by government and the media for being immoral and not paying their "fair share" of tax in the jurisdictions in which they operate. Is this criticism justified? What is a "fair share" of tax? This article attempts to resolve some of the myths surrounding the debate about corporate tax avoidance by multinationals.
I. Introduction
The morality of tax planning has been questioned by the media and policy makers who have called upon multinationals to pay their “fair share” of tax. As governments try desperately to reduce large deficits against a backdrop of international financial turmoil, tax planning has been denounced by some as unpatriotic and...
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