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Tax Management and Tax Evasion

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Edited By Konrad Raczkowski and Lukasz Sulkowski

Tax management and tax evasion represent an intrinsic element of economic turnover, an area of interest both to the institutional and to the real spheres of national economy. These problems, beyond any doubt, should become the focus of interest for all states having a common market, e.g. the European Union, or the countries which have not introduced the universally binding and which are highly susceptible to abuses in VAT tax – such as the United States. With this in mind, the authors of this volume outline the issues of managing taxes and tax evasion, with a focus on the European Union in general and Poland in particular. The choice did not come by accident, since the latter was the only EU member state which in the waning years of the still continuing economic crisis never fell into negative economic growth.
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Introduction

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Tax management and tax evasion represent an intrinsic element of economic turnover, an area of interest both to the institutional and to the real spheres of national economy. It needs to be said openly that a specific kind of tax engineering flourishes now, in the days of all-pervasive globalisation, when tax burdens impact the overall productivity of production factors, but very often relate to only non-tangible and legal values. Such schemes are devised as a rule by large multinational corporations, which develop international tax strategies adapted to the profile of conducted economic activity; other enterprises follow suit with their strategies. The aim is, of course, such reduction of tax liabilities, using legal means, which will allow for retaining the largest possible profit in the overall profit & loss account, allowing for presentation of the best possible financial result. This way in many countries one meets with major firms, such as trade and service companies, hyperstore chains or all categories of single logo restaurant chains which, irrespective of mass scale presence in multiple locations in the given country, may be paying no taxes in that country, or the sum of such taxes will be disproportionately low in relation to the generated turnover. After all, in international relations it would be difficult to prove that an entity which differentiates costs as part of creative price manipulations in reality transfers profits so as to reduce tax liabilities.

In this context a fundamental question arises, asked above all by the...

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