Research the reason why Carnival paid hardly any US taxes. Was there anything that Carnival did that would be considered an unethical tax practice? Tax Treatment of Corporations and Partnerships

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Research the reason why Carnival paid hardly any US taxes. Was there anything that Carnival did that would be considered an unethical tax practice?
Tax Treatment of Corporations and Partnerships

Accounting 383

ETHICS RESEARCH PAPER

Facts: The Carnival Corporation wouldn’t have much of a business without help from various branches of the government. The United States Coast Guard keeps the seas safe for Carnival’s cruise ships. Customs officers make it possible for Carnival cruises to travel to other countries. State and local governments have built roads and bridges leading up to the ports where Carnival’s ships dock.

But Carnival’s biggest government benefit of all may be the price it pays for many of those services. Over the last five years, the company has paid total corporate taxes — federal, state, local and foreign — equal to only 1.1 percent of its cumulative $11.3 billion in profits. Thanks to an obscure loophole in the tax code, Carnival can legally avoid most taxes.

Assignment: Research the reason why Carnival paid hardly any US taxes. Was there anything that Carnival did that would be considered an unethical tax practice?

The body of the paper is to be 3 pages, not counting Title Page and Bibliography. Footnotes are to be included at the end of the paper. One inch margins at top, bottom, and each side. Use an approximate 10 or 12 pitch (12 or 10 point) type and double space the paper. Make sure the pages are numbered beginning with the body of the paper as page 1.

Your research should include finding articles written on the topic. You must use at least two separate reference sources.


 

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