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Globalization and Tax Policy : Doc

   

Added on  2020-10-05

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RESEARCH PROJECT

Table of ContentsCHAPTER 1: INTRODUCTION....................................................................................................3Research Background.............................................................................................................3Aims and Objectives...............................................................................................................3Research Questions................................................................................................................4Rationale.................................................................................................................................4CHAPTER 2: LITERATURE REVIEW.........................................................................................4The impact of globalisation on corporate tax. policy of British airways.........................5The relationship between globalization and corporate taxation affect the financialperformance of British airways...........................................................................................6The effects of relation between globalization and taxation policy on pricing.................8CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10Introduction:.........................................................................................................................10Research Methodology.........................................................................................................10Research Philosophy............................................................................................................11Research Approach...............................................................................................................12Research choice....................................................................................................................13Data Collection.....................................................................................................................13Sampling...............................................................................................................................14Data Analysis........................................................................................................................14Research ethics.....................................................................................................................15CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................15CHAPTER 5: CONCLUSION......................................................................................................25RECOMMENDATIONS...............................................................................................................26REFERENCES..............................................................................................................................27

Topic: To analyse impact of globalisation on the Corporate Taxation policy- A case study onBritish AirwaysCHAPTER 1: INTRODUCTIONResearch BackgroundGlobalisation has assisted most of the business organisation in conducting their businessoperations at the global scale. It is a process which is related with the interaction as well asintegration of all the business and human resources, thus making use of it in improving overallbusiness operational efficiency and performance level. Globalization has resulted in boosting thelevel of corporate tax which has directly affected the revenue margin of most of the companiesthereby increasing their business operational efficiency level. With the ease in the availabilityand mobility factor of labour as well as capital resources, it has resulted in increased in theinternational tax competition and its rate. With the help of this research, one can understand thathow most of the individual and business firms are having freedom of gaining low tax rateadvantages in the foreign market. It will evaluate that because of globalisation and globalisedbusiness economy, it has become almost impossible for most of the countries to charge tax athigh rates as it will result in to out flow of both the people and capital as well. It is very much important for every business organisation to formulate effective as well assound business plans and strategies in line with the aims and objectives of the business. It willassist many business firms in improving their business performance along with operationalefficiency. By bringing in such improvement, it also affects the level of company’s profitabilityand productivity to a great extent. Also, it has provided base for companies for gaining benefitsby sharing if strong as well as effective business ideas, plans, processes, skills and technologiesacross the national boundaries of countries. With the help of globalisation, it has enhancedcapital growth rate along with improvement in the per capita income of many countries. Increasein the level of globalisation because of competitive pressure has assisted in making improvementin the context of governance and better labour protection.Aims and ObjectivesAimTo evaluate overall impact which globalisation has created on the corporate taxationpolicy in the context of British Airways

ObjectivesTo understand relationship in between globalization and corporate taxation policyaffecting the financial performance of British airways.To analyse impact of globalisation on the taxation policy adopted by the British Airways.To evaluate impact of correlation of globalization with the corporate taxation policy inthe context pricing strategies. To recommend measures to be adopted by the British Airways for gaining competitiveadvantages from the changing corporate taxation policies.Research QuestionsQues. 1. What measures to be undertaken to analyse relationship between globalization andcorporate taxation policy affecting financial performance of British airways?Ques. 2. What are the impacts of globalisation on the taxation policy adopted by the BritishAirways?Ques. 3. How to evaluate impact of globalization & corporate taxation policy correlation inthe context pricing strategies adopted?Ques. 4. Any recommendations to the British Airways for making improvements in itscorporate taxation policy for gaining competitive edge.RationaleWith the help of this research project, the researcher has been able to evaluate impact ofglobalisation on the corporate taxation policy. Globalisation has become one of the mostimportant aspects for many business organisations in increasing their customer base across theglobal level. Because of globalised business economy, it has resulted in making most of thebusiness firms in becoming independent and improving base of their performance. Byundertaking this research study, it will help many other scholars as well as researcher incompleting their own research project in effectually manner. Also, this research project definesabout core impact which has been made by globalisation on the corporate taxation policies ofmany companies and measures as undertaken by them for coping up with such aspects.CHAPTER 2: LITERATURE REVIEWGlobalisation: It is a process of spread of information, technology and goods across theworld. In business contexts, globalisation is a procedure under which a business develops aninternational influence by its operation and start operating in the global market under

international trade and commerce. This bring both positive and negative outcomes on thebusinesses (Globalisation and its implication on tax policy, 2019). When businesses globalise their operations, it affects international trade, relations &economy. Along with which, aspects such as technology, social & cultural dimensions andcorporate world also gets influenced. Taxation policy: the tax policy is the choice by a government as to what taxes to levy, inwhat amounts, and on whom. It has both microeconomic and macroeconomic aspects. Fororganisations which globalise their operations has to follow taxation policies of various nationsin which they operate which affects their activities. The impact of globalisation on corporate tax. policy of British airways.As per the view point of Crane and et.el., (2019), Globalisation has been defined as aprocess of interacting and integrating the economy, business processes and operations ofcompany of one country with the economy of another company operating in the world. Due toglobalisation, it has benefited several business firm by providing assistance in form ofconducting of business operations at the global level. It has provided ease in making interactionof people, companies and government across the world enabling them to perform and increasetheir market interaction across the boundary. By making use of Globalization concept, BritishAirways has been able to increase its trade and commercial activities thereby leading toacquisition of large market share and profitability ratio. It has provided number of choices forconsumers related to the sourcing of products and services in virtual manner across the world. On the other hand, Brejning, (2016), argued that with the introduction of Globalizationconcept, it has made it difficult for many countries to levy tax at high rate for its services andproducts. By charging high percentage of tax amount, it will result in flow of resources includinghuman, capital and technological one. Every business organization has to make proper andtimely compliance of applicable taxation policies, rules and regulations for remainingcompetitive in the global market and economy. Due to globalization, Taxation policy followedby the British airways has got affected. Earlier before introduction of Globalization, charging oftax at high rate is feasible for both the company and economy as there is no other optionavailable for its consumers to sources resources in form of products and services at low rate fromany place in the world. British airways have to make compliance of different business as well as

corporate related taxation policy as per the business operations conducted across the world, non-compliance of which can make them penalized and charging of high cost.According to the Evertsson, (2016) globalization increases the trade between twocountries. It provides global platform to perform the activities and explore the business. It helpsthe companies to increase their profit by selling their goods and services to the global customerwhich ultimately increase their income by charging higher corporate tax on their services.Globalization increases the business of company because it provides global market to expand thebusiness. At the same time, it also provides the variety of customer with different interest andincome level. As per the facts and figure due to globalization the business of organization isincreased by 30% which indirectly increases the profit of the company. According to the authorthere are little evidence that globalization force to the downward movement of corporate tax andrevenue. Globalization boosts the corporate tax and revenue of the company by increasing thebusiness. But Whait and et.al., (2018) argued that globalization decrease the income of thecompany because due to the globalization government force the companies to reduce their taxrate on corporate profit which ultimately affect the profitability of the company. As per thegovernment they force the companies to minimize the tax rate by two ways. Firstly, they forcethe company to reduce the statutory tax rate on the corporate profit and secondly the governmentforce the companies to reduce the incentives on corporate investment. The both activities ofgovernment ultimately reduces the profit of the company. As per the views of author the impactof globalization on corporate tax policy is negative for the company because it reduces theproductivity and profitability of organization. They explain that globalization reduces thecorporate tax by 30% in UK market, 35% to 40% in Japan and 16.5% in Canada by 2011.The relationship between globalization and corporate taxation affect the financialperformance of British airwaysAs per the thoughts of Morrell, (2018), concept of Globalization and corporate tax areinterrelated as both creates significant impact on the working and operations of businessorganization taking place at the global level. Also, the financial performance and position ofcompany gets influenced by the adopting concepts and ideas related to globalization. Withincrease in functioning of globalization and competitions in the taxation policy, it has provided

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