Question

A recent survey asked: Is it morally wrong for corporations to use tax havens? Its results: Most said yes. See http://environicsresearch.com/insights/nine-ten-canadians-think-morally-wrong-canadian-corporations-use-tax-havens-new-poll/.

Delving deeper into the issue of tax avoidance, you will go beyond the news release. You will examine the polling data, not just the news release. You will round up the news coverage of the survey results. You will gain a sense of the public debates of tax avoidance in Canada. You will learn from relevant studies on tax justice in civil society by think tanks, governments and academics around the world.

Making good use of your research, you will write a 100-word note starting with the following:

It’s morally wrong for Canadian corporations to use tax havens because ….

That is, you will start by completing the sentence and then you will make your most compelling argument in your submission. You only have 100 words so make one compelling argument and make it well. You are required to demonstrate that you have done extensive research and made good use of your research to argue why it’s morally wrong for Canadian corporations to use tax havens.

Important: You cannot make up your own research question, e.g. you cannot argue it’s not morally wrong for Canadian corporations to use tax havens or you have reservations or … as that’s NOT the research question for this particular part of the research project. Think of this as an exam, in which you cannot make up your own exam questions for any reason.

Answer 1

It is morally wrong for Canadian Corporations to use tax havens because most of the canadian corporates are paying lower tax rates than an average Canadian and unfortunately much of the tax dodgin is legal.

A recent survey suggests 90 per cent of Canadians believe it is morally wrong for large corporations to avoid paying taxes by using off-shore tax havens, even though the practice is legal.

Estimates vary, but it's thought billions of dollars are lost in tax revenues annually because of legal tax havens.

It is estimated that $250 billion are sheltered in tax havens depriving the government of an estimated six billion dollars a year in tax revenues. It would be enough to pay for 200,000 new child cares spaces, 650 safe drinking water systems for Indigenous reserves plagued with a lack of such facilities, and 18 new Super Hornet fighter jets.

The advocacy groups Canadians for Tax Fairness and Leadnow commissioned the survey which also found that 87 per cent of Canadians want the law changed to make tax havens illegal. And two-thirds of those strongly supporting legislative action.

These groups estimate an even higher loss in tax revenues pegging it at between $10 and $15 billion per year.

Thus, actions must be taken and such tax havens should be made illegal for the sake of justice in tax practice and prevention of loss of tax revenue through such practices.