The article The price isnt right concerns the topic of tax evasion one of the biggest problems

s of taxation nowadays. One of the biggest companies in USA have developed a disquietly effective way of tracing their profits through the so-called tax havens. This tax avoidance costs the U.S. government billions of dollars and therefore they are working on some anti-avoidance plans. Two huge companies Google and Starbucks are brought up as examples of particularly skillful explorers of these tax avoidance methods. The latters evasion led to a threatened boycott by consumers so the company decided to pay voluntarily around 10m pounds more than it owed. It was, however, just a small part of the money it had managed to save. The process of tracing the money is itself quite simple the company uses its subsidiary located in an area with lower taxes to move the income there, and the expenses to the higher-tax jurisdiction. Its achieved by creating some artificially complicated, meaningless transactions which allow the companies to transfer the money between its subsidiaries. The main cause of these problems in the inconsistency of the international tax system. It was developed nearly a century ago and fails to keep pace with business during globalization. I think that the described manoeuvers are inevitable as long as the system allows the companies to move their income around the world in order to avoid taxation some changes are probably needed.