Corporate tax evasion has been in the news for a while. When Apple Inc. faced charges of evading taxes by not bringing their profits made overseas to the U.S., the company quoted high corporate tax rate as the reason many multinationals evade taxes legally. Even though this argument is considered to be the reason for legal tax evasion, some maintain that not all companies pay 35 percent in taxes.
Preventing tax evasion appears to be quite complicated. Even though there have been talks of a tax code overhaul in an effort to bring down tax evasion drastically, there’s no guarantee that it will work.
The reality is that corporations may still find ways to evade taxes despite a tax code overhaul. There might be a reduction in tax evasion, but to what extent is debatable.
Corporations evading taxes has become a major problem for the government, as they continue to lose billions of dollars each year. Preventing legal tax evasion is not simple primarily because it there are no consequences for practicing corporations. The efforts needed to limit legal tax evasion have yet to be realized.