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Finance In a Global Context, tax - Coggle Diagram
Finance In a Global Context
Multinationals
Policy Makers
Influence decision making
Exploitation
Tax Haverns
Fewer Taxes
Currency options for storage
Use Transfer Pricing
Concentration
reduces competition
Higher Costs
Financial Institutions
International Money Fund :
Ensures Stability of the international monetary system.
Cheap Exchange Rates
Cheaper export Rates
Competitive market
Helps Countries in financial trouble
World Bank
Goal-Eradicate extreme poverty
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Promotes Shared Prosperity
Financial Flows
Balance Of Payments
Current Accounts
Registers-imports/export payments
Income /outgoings abroad
Capital Accounts
Records capital payments abroad
Financial Accounts
Records financial flows
covers claims on or liabilties to non-residents
Whole Account must balance otherwise will cause a global imbalance
Deficits or surplus in large countries
Disruptive Adjustments
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Transfer Pricing
Divsion Pricing
Tax savings
Tax reductions and avoidance
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IRS strict rules to avoid misuse
Transfer Mis-Pricing
Trade between unrelated parties
Missing tax payments to governent
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Arms Length trading
genuine result between two unrelated companies
Tax Considerations
Measures
Profit
Income Tax
Social contribution
Property Taxes
Dividened Tax
Government chosen tax system
Raise tax revenues for public finances
Tax Avoidance
profit shifting across borders
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tax rates advantages
Frowned upon but legal
Tax Evasion
Illegal Practice failure to report income or pay taxes
Exchange Rates
Value Fluctuations
Business performance affected
Market size restrictions
cut back on high volatle exchange rate countries
affects
Recession
low interest rates
public finance reductions
International Financial Reporting
Economic Development
Borrowed legislation
Colonisation
Imperialism
Economic Domination
IRFS-not for profit
Financial market international standards
Transparency
Accountability
