Title: Tax Corruption and Parallel Economy (The Social Irresponsibility of Tax Avoidance Practice)
Author-Name: Dr. Madhulika, Lecturer in Commerce, School of Management Studies, IGNOU, New Delhi.
Abstract: Indian economy is undergoing a sea change. Most of the economic models have tilted towards markets. This
phase of globalisation has not only prompted change in the way of doing business but also touched significantly
upon the everyday life of common man, his needs, and aspirations. The Social Irresponsibility of Tax Avoidance
Practice is perhaps the most fundamental way in which private and corporate citizens engage with broader
society. It is therefore curious that tax minimization through elaborate and frequently aggressive tax avoidance
strategies are is regarded as one of the prime duties that directors are required to perform on behalf of their
shareholders. It is even more curious that the debate about corporate responsibility which has touched on
virtually every other area of corporate engagement with broader society has scarcely begun to question
companies in the area where their corporate citizenship is most tangible and most important – the payment
of tax. The free market tax competition model assumes that all tax-paying citizens and businesses are perfectly
mobile and therefore able to migrate between different jurisdictions according to preference. Ironically the
majority of tax havens have adopted elaborate defence strategies to prevent such migratory flows, but the
otherworldliness of the perfect mobility assumption has not deterred these arguments in defence of the
‘discipline’ imposed by tax heavens.
Keywords: stress; employee attraction; pressure; turnover; retention strategies
Classification-JEL: A0, T18, C0
Citation: Madhulika. Tax Corruption and Parallel Economy (The Social Irresponsibility of Tax Avoidance Practice). Journal of Commerce and Trade, April 2008; 3: 1;Pp.-5-9.
Paper Code : JCT-A08-M-1
Web Address : http://www.jctindia.org/jct/october2008-v3i2-1.pdf
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