Question

How can the various U.S. based Fortune 500 companies to practice tax avoidance?

if there is a solution that would offer an ethical approach to paying corporate taxes for companies?

Answer 1

The fortune 500 companies are always looking for tax avoidance because that will help them inflate their books of accounts, and that will help them inflate the overall profit, so these fortune 500 companies are always motivated to manipulate their books of accounts in order to have a higher cash flows and in order to have higher profits and that is to be simultaneously reflected in the share price of the company.

tax avoidance are always motivational in nature for the companies because there are certain loopholes in the system which could be manipulated by this company to a large extent in order to gain through various manipulative practices by manipulation in books of accounts. these companies are always having appropriate strategies to avoid taxes.

Tax avoidance can be prevented by having an ethical approach which will make the entire management as well as the shareholders of the company liable, because management are always liable to report the fair values and they are always responsible for representation of the true books of accounts and they should not be manipulating in for their own advantage, and for the advantage of the shareholders because it can lead to promotion of bad practices in order to avoid tax.

there should be stringent rules and regulation as well as there should be a stringent authority in order to regulate the tax avoidance scheme of these fortune 500 company in order to to eliminate all these malpractices related to to mis reporting of books of accounts so that the interest of the various stakeholders related to the company can be protected in the long run.

Management should be made educated because the company should always be inclined to work for the society it operates into, and it should never avoid taxes as taxes are ultimately used for the benefits of the society.