AGGRESSIVE TAX PLANNING - A CHALLENGE FOR IMPROVING TAX LEGISLATION

Abstract

Aggressive tax planning (ATP) is a mechanism that avoids the business behavior of multinational corporations of modern times. As a privilege of businesses with a multinational sign, opened a debate among the expert public and the relevant international institutions and organizations for progress in tax challenges. In a state of rapid digitalization in all segments of modern living and rapid data exchange, the global business elite has succeeded in promoting "legal" templates for utilizing gaps in the architecture of international and national tax systems.

Aggressive tax planning is a completely different and more complex instrument, which is essentially legal use of the tax regime in one territory in the own benefit of multinational corporations in order to reduce the amount of tax payable. This compex compilation of legal actions creates artificial upkeep of corporate profits in countries where liberal tax policies are governed and thus significantly reduces the amount to be set aside to pay the tax payable on a corporate income tax basis.

Aggressive tax planning as a new trend in the current operations of corporations can not be brought under the terminology of tax evasion or a an apparent legal deal - which national legislations have regulated and anticipated proper sanctioning.

The public opinion court is that aggressive tax planning is an immoral act in business corporate behavior and I think there is already a red light to encourage governments to react proactively and more efficiently to new risks that have serious financial implications at the central budget chapters.