Seminar paper from the year 2017 in the subject Business economics -
Accounting and Taxes, grade: 1,3, University of Applied Sciences
Kaiserslautern, course: MA International Management and Finance,
language: English, abstract: In this analysis, historical tax payment in
the last five years (from 2011 to 2015) of ten insurance companies in
the UK are investigated and analysed thoroughly in order to answer the
question, whether they were evading taxes over the course of this time
period. All of these companies are among the top 14 insurance companies
in the UK in terms of assets. In the current age of expanding
globalisation and increasing international integration, large
corporations and individuals may hold stream of incomes and expenses in
multiple countries with different legislation all around the globe. As a
result, the matter of tax practices become more and more complicated. In
the case of insurance companies, the issue becomes even more complicated
due to the nature and characteristics of the streams of income and
expense in this industry. Despite advanced complicated tax legislation
in developed nations and reports by specialists, the concern for whether
companies such as insurance companies are avoiding taxes or not is
growing. In order to answer the aforementioned question, firstly, a
quick overview over an important study of tax payments and the
definition of so-called tax heavens are given. Secondly, the work's
methodology, which is mainly based on the analysis of profitability
ratios and linear regression analysis is laid out. Lastly, the results
of the analysis are discussed and put into context.
