Iceland Prime Minister quits over Panama Papers tax haven scandal

Panama Papers: David Cameron embroiled in tax avoidance row after details of father’s Bahamas business interests are leaked

Following the recent Panama tax scandal, there is ever increasing pressure on individuals and companies to pay tax in the countries where they generate income/profit. It is worth noting that GrandVision had published a Tax Strategy as part of their Annual Report and have disclosed their approach to transfer pricing. An ethical issue arising in the unseen information of your exam, which you’ll need to consider.

Tax planning schemes involve using tax legislation to legally minimise the tax paid by an individual or company, however the issue lies in the morality of such planning. Schemes often involve high net worth individuals and companies structuring transactions in order to transfer income/profits via complex transfer pricing systems to lower tax regimes. Some consider it the duty of citizen to pay tax in order to build infrastructure and provide essential services (such as the government funded eye tests IC Optical carry out) that taxation revenues fund.

I’ll leave it for you to consider the ethical implications of such tax schemes and how such tax planning can have an effect on customer relationships and increase the Ceeland Government’s interest in IC Optical.

 

GrandVision Tax Strategy.PNG

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