A Response

A Comparative Look at Regulation of Corporate Tax Avoidance

“…3 Another provision, attributes items of income, deduction, credit, and other allowances to the employee-owners of a professional corporation formed with the principal purpose of diverting tax liability from the owners. 5 Administrative regulations also contain targeted anti-avoidance rules ("TAARs"). Thus, the restructure of a transaction as a sale to an unrelated third party who immediately re-sells the asset to the intended related party would not achieve allowance of the loss because the statute itself negates losses on indirect sales as well.…”

“…Those contained in the conduit financing rules under Regs. 5 IRC §267(a)(1). Partnership anti-abuse regulations limit the ability to organize a business as a partnership in order to reduce tax liability of partners in a manner inconsistent with the intent of the partnership provisions.…”

“…Responsibility for governing at the federal level is shared by the Executive, Legislative and Judicial branches of the federal government. 5 Judicial appointments to the superior courts (trial or appellate) in each province or territory, the Federal Court, the Federal Court of Appeal, the Tax Court, and the Supreme Court of Canada are made by the Governor General on the recommendation of the federal cabinet. 2 These are high-ranking members of government, including the Prime Minister (the leader of the political party with the most elected representatives or seats in the House of Commons).…”

“…5 Although there is no generally accepted definition, most scholars define tax evasion as an unlawful manner of reducing the tax liability -for example, underreporting the income made (as in the underground economy) or by over-stating business deductions. Therefore, the definition of avoidance is not (and can not be) purely legal.…”

“…. 5 In China, there is no substantive separation of powers between the three pillars of government (the legislature, executive and judiciary) in the traditional Western sense. of the Chinese people and the Chinese nation."…”