Ep 11. Taxes Behind Closed Doors

In Frontline’s season 4 episode 11, titled Taxes Behind Closed Doors, the show delves into the world of corporate tax avoidance and the loopholes that allow companies to legally evade paying their fair share of taxes. The episode examines the issue through the lens of one particular tax loophole - transfer pricing.

The transfer pricing loophole allows companies to artificially shift profits from high-tax countries to low-tax countries, thereby reducing their overall tax burden. The practice is legal, but the episode raises questions about whether it’s ethical, particularly when corporations employ aggressive tactics to minimize their tax bills.

The episode follows the story of one whistleblower, a former executive at a major corporation, who comes forward with allegations of tax fraud at his former employer. He claims that the company used transfer pricing to illegally avoid paying millions of dollars in taxes to the U.S. government. The whistleblower’s journey to expose the truth is a long and arduous one, and the episode highlights the challenges faced by those who take on powerful corporations in the name of tax justice.

Through interviews with tax experts, lawmakers, and corporate insiders, Frontline paints a picture of a system that often rewards big corporations at the expense of ordinary taxpayers. The episode also delves into the political and economic factors that allow corporate tax avoidance to persist, even as governments struggle to balance their budgets and provide essential public services.

Throughout the episode, viewers are introduced to a range of voices on all sides of the issue, leaving them to draw their own conclusions about whether transfer pricing and other tax avoidance tactics are ethical or not. The show also raises important questions about the role of government in regulating corporate behavior, and whether current tax laws need to be reformed in order to ensure that everyone pays their fair share.

Overall, Taxes Behind Closed Doors is a compelling, thought-provoking episode of Frontline that sheds light on an issue that affects us all. Whether you’re a taxpayer, a business owner, or a policymaker, this episode is sure to spark important conversations about the role of taxation in society and the need for greater transparency and accountability in corporate tax practices.