Question

What are corporate taxes for? Who benefits? Who "wins" when taxes are raised? Who "wins" when taxes are lowered? Do you believe there is a "fair share" of taxes owed by multi-national corporations? To whom? How will it be extracted? How will it be audited?

Answer 1

Corporate taxes are paid by corporate bodies to the governing bodies in compliance with the tax administrative system of the nation. Corpoarate taxes are paid out of the profits earned by the companies. They form part of major revenue of government.Corporate taxes play vital role in the development of the nation as a whole. A huge magnitude of people work together in the corporate mechanism to make the most of resources available to them.

Higher corporate taxes enable the government to have fund for the economic development programs. Whenever the corporate taxes are raised that will improve fund availability for government programmes.

But on the other end reducing corporate taxes helps to promote new companies to join the industry. And the companies will be encouraged to pay taxes properly as the tax burden gets reduced and they can make use of the tax advantages. The companies can have additional funds for expanding its operations on a higher scale.

Fair share of taxes are owed by multi national corporations.And most of them are evading taxes making use of the loop holes available in the tax system. Even though initial start ups are being promoted through various tax incentives, many of the multi national giants are leaking the tax revenue from the hands of government. Proper audit of accounts by statutory auditors is required so as to foster the tax revenue of the economy as a whole. They need to ensure compliance with all the regulatory compliances imposed on the corporates by the government.