Create a 10 page essay paper that discusses Tax Planning And Tax Avoidance.Taxation is a major tool to drive the economics in the certain direction. Young and Guenther studied the relationship in the

Create a 10 page essay paper that discusses Tax Planning And Tax Avoidance.

Taxation is a major tool to drive the economics in the certain direction. Young and Guenther studied the relationship in the context of the mobility of capital in international level and Sun studied the efficiency of capital allocation. However, all these require that the financial reporting to be reliable, accurate, transparent, comparable and true representative of business conditions. International Financial Reporting Standards is mandated to be adopted as the financial reporting system in the EU countries for the listing companies. Barth, Landsman, & Lang and others have reported an improvement in the accounting information with the adoption of IFRS. Samuel, & Obiamaka in a paper stated that IFRS system of accounting as the base for tax will drive the tax accounting to generate the real economic value of the company. This provides greater opportunity to explore the real taxable income for the company. Use of IFRS increases the chances of them being listed in other countries. Use of the comparable system of IFRS across the broad would reduce the chances of measures taken by the company for tax avoidance to be overlooked. Another argument in favor of the adoption of IFRS states that it would result in the increased involvement of audit committee in addition to the other level of management. This will increase the double check facility for the audit committee as companies will not be available with an opportunity to avoid tax by claiming that reporting of a transaction is in accordance with the rules.