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Critical management in global context

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The issue which is chosen from various videos of world economic forum is “Can Global Tax Avoidance Be Stopped”. This issue is selected as it is global issue which is affecting various countries such as Ireland, UK, US etc. In video there are various speakers who are discussing on the issue of tax avoidance. They are Winnie Byanyima, Jeseph E. Stiglitz, Pierre Moscovici, David Serra and Paschael Donohoe. All of them are interviewed by the business editor of France 24 Channel who is Stephan Carrol. All the delegates discussed on this serious issue which is a legal manner in which individuals and organisations may reduce their tax liability. It is not a crime but due to this government is not getting sufficient funding to operate their activities. It is leading various nations toward poverty because the legal authorities there are not able to do anything for social welfare.

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All the panel members were agree with the issue because they want that the tax avoidance should be reduced. One of the speaker suggested to implement a system which is blacklisting the countries where the rate of tax avoidance is very high. But at middle a conflict took place between two delegates because one of them was not agree with this solution because it is not possible to start blacklisting developing countries if it is followed there then such nations will become more poor. An another conflict has also been arisen in which a discussion regarding enhancing the corporate tax rates. But it is not a solution for the issue because it may result in reduced foreign investment.

One of the ignored issue by the panel was related to tax evasion which is also increasing with a higher rate. One of the speaker provided suggestion that it such instructions should be provided to the organisation from the government in which they have to formulate their final accounts in transparent format. It will be beneficial for the legal parties to analyse their actual income and then figure out that all of them has paid the right amount of tax or not.

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At the end of the discussion all the delegates have decided that proper guidance to the business entities should be provided to form financial statements. It will help to collect the appropriate tax from them. They were also agree on the concept of black listing because it guides the countries to reduce rate of tax avoidance. Currently only Europe is using the blacklisting system but it would be beneficial for the whole world if other countries start to implement this system.

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