Enron Corporation: A case of aggressive tax planning
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This paper aims to analyze the case of Enron Corporation and how this company uses aggressive tax planning mechanisms. The work focuses precisely on the tax planning model used by Enron, with particular emphasis on the use of special purpose entities (SPEs) and offshore jurisdictions that are exploited to conceal liabilities and manipulate profits. It also intends to demonstrate that Enron exploited discrepancies between financial accounting and taxation (Book-Tax Differences) as a means of reducing the Effective Tax Rate (ETR), which was supported due to failures in Enron's governance and the lack of independence of the external auditor. This Enron scandal leaves a legacy for the history of taxation, as it was the driving force behind stricter regulations, such as the Sarbanes-Oxley Act (SOX), and the strengthening of OECD anti-abuse measures, namely BEPS actions, which prioritize the principles of transparency and economic substance in the fight against tax abuse.
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