Directors responsibilities with regard to avoidance of tax Assignment

Directors responsibilities with regard to avoidance of tax - engagement ExampleThe firm accepts that the government has legal powers and can to accede a shargon of the go withs profits away. Different countries have different tax rates and they must they paid as they are part of the rules and regulations of the country. If they are avoided they company would not be held socially trusty. It is agreed that the company can take all lawful measures to reduce the tax rates. But any illegal mean to avoid stipendiary tax would result in avoid of taxes which has a negative multiplier effect on the company and its profitability. The duty of the music director of a company is to have a good faith an element that would go on the company following corporate social responsibility as it would be a benefit for the monastic order on a whole. This would result in a positive multiplier effect in the gigantic run and improve its relations with other stakeholders. A good personality would be b uilt if they brook the exact amount of tax otherwise they would not maintain a high standard of reputation in the market, thereby losing its credibility and goodwill. Tax evasion is practiced by directors illegally and it gives a position to the reputation of the company as a whole. But they live in a fools paradise if thy think it would not be known to general population and from that immature act they stomach their credibility forever. This leads to customers driving away from the company as well. Recently, some multi-nationals have been found to be avoiding paying(a) taxes in millions despite their enormous sales. The examples are Starbucks, Google, Amazon, Facebook and eBay but due to media coverage these multi-nationals have come down the stairs severe scrutiny. In countries like UK, businesses prosper because they have portrayed a good social and responsible image for its customers and there is a trust factor. They do this by not providing transparency in the accounts dua l-lane by the public. Via doing such an act they are on the verge of becoming directors of an insolvent firm. This would be a threat to the companys long term profitability. Thus the directors must understand that taxes are a form of cost just like wages, rent, etc. LEGAL OBLIGATIONS ON COMPANY DIRECTORS IMPOSED by dint of DIRECTORS DUTIES It is a natural phenomena in the modern world that governments run on the taxes paid by its citizens.1 The expenditures of a state have to be met by the taxes paid. The companies earning more have a bigger dispense in taxes than the ones earning less. The issue arises when multi-nationals earning in billions use legal strategies to avoid paying taxes. Having made legal chiliad to undertake this, their action cannot be termed illegal and they cannot be held accountable in court.2 Such cases have tardily come on the scene, thanks to the media reporting, but what can be done about it is still an issue. A director is a high-level employee of the c ompany and is responsible for the companys performance and answerable to its employer, that is, the company. A director is not dutiful to the members of that company, and this also leaves out the companys creditors and members. So, a director owes its trust element to the company only and this is determined by