Discussing corporate tax avoidance

This is quite a tough topic, and one that I'm sure you're aware of. It's a fact that companies pay a smaller slice of the overall tax take in most countries than they did decades ago (see chart). That's partly because taxes on business have been reduced.But the debate is really about whether firms are paying their fair share. It's also about the lengths companies like Apple, Amazon, Starbucks, Google or IKEA go to in order to minimise the amount of tax they pay. Most people appreciate that these firms are clever enough to operate within the letter of the law, but is their behaviour ethical? And how do they do it?!

I've been inspired by this fascinating 8 minute Guardian video clip which explains how Apple avoids paying tax on its profits.

Perhaps you might like to look at some of the links I've put together on this topic and consider an extension activity on this topic (ideal for those of you going on to study Business at A2, or with a summer of thinking time before starting at university). I think the basic discussion points include:

• How do firms (especially online enterprises, and 'footloose' multinationals) avoid taxation?
• Is their behaviour ethical?
• How might the public, governments and law makers respond to this issue?