Case Study Report

The last 40 years in Australia has seen a blurring of the three categories (between tax planning, tax avoidance and tax evasion), in particular, the distinction between [what constitutes] tax avoidance and tax evasion (Xynas, 2011). Alongside economic globalization, the recent decades have witnessed the rise of transfer pricing that facilitates the free movement of capital and tax avoidance (Hampton & Sikka, 2005; Sikka, 2017). In conventional accounting literature, transfer pricing is portrayed as a technique for optimal allocation of costs and revenues Such representations simultaneously acknowledge and occlude how it is deeply implicated in processes of wealth retentiveness that enable companies to avoid taxes and facilitate the light of capital (Sikka & Willmot, 2010, p.342).

REQUIRED: (1) Discuss the overlaps and distinctions among tax planning, tax avoidance, and tax evasion, with particular reference (but not limited) to Xynas (2011). (500 words excluding bibliography).

(2) Explain and evaluate the concept of transfer pricing and how it relates to the above quotes. You should address the issues including (but not limited to) the social, political, financial and ethical implications on business and broader society (1500 words excluding bibliography). Students are required to reference at least ten (10) academic journal articles.

Suggested readings: Hampton, M.P. & Sikka, P. (2005), Tax avoidance and global development, Accounting Forum, vol.41, no.4, pp.245-248.

Sikka, P. & Willmott, H. (2010), The dark side of transfer pricing: Its role in tax avoidance and wealth retentiveness, Critical Perspectives on Accounting, vol.21, no.4, pp.342-356.

Sikka, P. (2017), Accounting and taxation: Conjoined twins or separate siblings?, Accounting Forum, vol.41, pp.390-405.