Caption?? Source: YouGov 2012. 

Caption?? Source: YouGov 2012. 

Source publication
Article
Full-text available
Available for download at SSRN: https://ssrn.com/abstract=3021914 Multinational corporations’ tax practices are hotly debated nowadays. Multinationals are accused of not paying their fair share of taxes. Apparently, acting within the limits set by law is not sufficient to qualify as morally responsible behavior anymore. This article offers ethica...

Context in source publication

Context 1
... dominance of an economic-rational perspective may replace important legal-ethical principles in the taxpayer decision-making process. 9 Sometimes (the implementa- tion of) tax legislation incentivizes the use of devices that are highly artiï¿¿cial -"encouraging a culture of tax avoid- ance" (Freedman 2006, 371). Thus, the intrinsic, moral mo- tives of taxpayers to comply could be crowded out by ex- cessive, complex and unbalanced legislation. ...

Similar publications

Article
Full-text available
The present research recruited participants from China, which is suffering from serious air pollution, and examined whether air pollution would be associated with moral judgment and immoral behavioral intention. Study 1 (n = 145) used the objective Air Quality Index to indicate the level of air pollution and found that it predicted harsh judgment o...

Citations

... such as Starbucks, Google, Apple and Amazon were revealed. These events caused an unprecedented level of public outrage and fueled demands that companies should pay their 'fair share' of tax (Bennett & Murphy, 2017;Gribnau & Jallai, 2017). At the same time, MNEs nowadays face certain expectations from society and consumers (Panayi, 2015). ...
Article
Full-text available
We examine the relation between corporate social responsibility [CSR] and international profit shifting. We find consistent evidence that CSR is adversely related to profit shifting within European and US multinational firms. Additional results document that less profit shifting occurs in multinational firms that show high performance in the social or corporate governance dimensions. For US multinational firms, we find that the CSR performance is negatively related to profit shifting, particularly if a multinational firm faces fewer reputational concerns or competitive threats. Our findings point to a corporate culture in which, for international tax planning through profit shifting, CSR and tax payments complement each other.
... In this regard, another important question is what are the internal prices that would simultaneously reconcile the conflicting interests of the divisions while maximizing the company's profits? In such a situation, the question arises as to the ethical behavior of managers, but also as to whether their actions comply with the rules [49,50]. Bearing in mind the fact that segment managers can act against the interests of the company with their transfer pricing decisions, harmonizing the interests of the segments and the company as a whole is directly conditioned by the adequate choice of transfer pricing policy [51,52]. ...
Article
Full-text available
Prices applied to internal transactions between the business segments or divisions of a company in transactions between related entities within a group (transfer pricing) can have a significant impact on a company’s competitive advantage. Transfer pricing policy influences the profits of operating segments, resource allocation and the need for segment reporting. The two main approaches to transfer pricing are the tax and managerial approaches. The aim of this research was to test whether multidivisional companies operating in Serbia give more importance to the tax or the managerial aspect of transfer pricing policy. Another research aim was to determine whether segment reporting is more developed in companies in Serbia that have the legal obligation to prepare consolidated financial statements. Both research hypotheses were confirmed using the questionnaire method on a final sample of 52 large and medium-sized companies (out of 1912 large and medium-sized companies operating in Serbia). First, our findings show that tax compliance is more dominant in transfer pricing than the managerial perspective in the Serbian companies analyzed. Second, we found that mandatory consolidated financial reporting and related segment reporting can influence the managerial approach to transfer pricing in Serbian multidivisional companies and groups. Other factors (production orientation of companies, developed responsibility accounting and managers’ bonuses, for example) also encourage this approach.
... Aggressive tax planning is not usually discussed on the ground of legality but rather with moral perception. Tax planning practice should be studied in the context of ethical acceptability and moral justifications alongside the legal acceptance (Hans, Gribnau & Jallai, 2017). ...
... ance, particularly that of multinational corporate groups (OECD 2015a). From the perspective of ethical concepts, such as a utilitarian approach, a framework according to John Rawls, or concepts of contractual rights (Payne and Raiborn 2018;Gribnau and Jallai 2017), tax avoidance is problematic. These concepts argue that companies should generally be held responsible for paying their fair share of taxes. ...
... Thus, the taxation of multinational corporate groups should ideally be founded on ethical and theoretical concepts (Paine 1994). Yet, since there are different answers to the question what is right and fair, the legal and the ethical responsibility may differ-see, e.g., Gribnau and Jallai (2017), who differentiate between mere compliance with the letter of the law and an ethical responsibility that may go beyond this. There may be a legal responsibility without an ethical responsibility and vice versa. ...
Article
Full-text available
This paper deals with the question whether there are reasons to deem multinational corporate groups ethically or legally responsible for paying their fair share of taxes. Ethical concepts argue that companies should generally be held responsible, but these findings contradict the mainstream market theory that understands companies as legal fictions and therefore not ethically but merely legally responsible. In contrast, we base our argumentation on the political-cultural market theory. We find that this theory provides reasons to ascribe an ethical responsibility for paying their fair share of taxes to multinational corporate groups. We argue, moreover, that this ethical responsibility also speaks for a legal responsibility. The prevailing tax law, particularly the arm's length principle, does generally not see groups as tax subjects. This currently missing legal responsibility gives reasons to rethink tax law. Therefore, we analyze whether the OECD Pillar One proposal may be an alternative to existing law.
... 322). Gribnau (2015) and Gribnau and Jallai (2017) offer relatively similar perspectives. ...
Chapter
In this chapter, the relation between the tax behaviour of corporations and CSR is explored. The negative consequences of corporate tax avoidance and evasion are emphasised, namely those affecting nations and corporations. The argument that the pernicious social consequences of the generalised use of certain tax minimization strategies by corporations make their tax behaviour a matter of business assumption of social responsibilities is presented. Responsible tax behaviour is analysed as a CSR issue and is presented as an integral part of any corporation’s social responsibility. The issue of how some CSR-related instruments deal with tax behaviour is addressed. The importance of responsible tax CSR policies and the reporting thereof is outlined as a basis for an effective fight against tax evasion and avoidance.
... To keep these advantages and at the same time address freeriding behaviour, several scholars advocate for more transparency around tax lobbying (Brosens & Bossuyt, 2020;Christians, 2017). Such transparency has been associated with ethical and democratic traditions (Ostas, 2007), good governance (Bertók, 2009;Brosens & Bossuyt, 2020;Christians, 2017), and corporate social responsibility (Anastasiadis et al., 2018;Bauer, 2014;Gribnau & Jallai, 2017). However, references to ethical behaviour as a normative basis for transparency remain vague and, consequently, leave room for doubt and counterarguments. ...
Article
Full-text available
Multinationals’ aggressive tax lobbying that involves free-riding behaviour and results in disproportional benefits to the disadvantage of other taxpayers, is problematic for several reasons. Such lobbying undermines the legitimacy of tax legislation and has a negative impact on trust in the tax system. Based on Immanuel Kant’s ethical theory, this article first suggests a new normative basis for a moral duty that requires multinationals and their leaders to be transparent about their political activities and tax lobbying. Next, it introduces a new concept of transparency in respect of tax lobbying. ‘Deliberative transparency’ requires multinationals and their leaders not only to be open about their reasons for tax lobbying, but also to deliberate with stakeholders and, maybe even more importantly, to provide evidence supporting their lobbying positions. Finally, based on these new understandings, additional government interventions against aggressive tax lobbying are suggested, for example mandatory stakeholder consultation, reporting on stakeholder attitudes and perception, and evidence-based lobbying requirements.
... To conclude, tax planning in the context of CSR and good tax governance should nurture an ethical state of mind among corporate entities while also increasing transparency and accountability. Acting within the bounds of the law, it appears, is no longer sufficient to qualify as morally responsible behaviour [24]. ...
Article
Full-text available
Using data from 2003 to 2020, this study uses a scientometric approach to investigate the nexus between Corporate Social Responsibility (CSR) and corporate tax aggressiveness research. The objective is to identify under-explored regions, variables, citation patterns, theories, and unexplored topics in the body of knowledge to establish trends in publications on issues about corporate social responsibility and corporate tax aggressiveness. In addition, the study also considers publication journal areas of focus. Research linking CSR and tax avoidance using VOSviewer and triangulating with CiteSpace, by way of approach, is not found in the literature. The findings suggest that CSR and corporate tax aggressiveness researchers do not use far-reaching relevant theories and applicable findings from studies beyond their clusters. Another finding is that African countries remain under-explored due to the absence of institutional representation and an adequate number of investigators regarding CSR and corporate tax aggressiveness research. Finally, the study reveals a number of research topics to be explored. Governments, particularly in developing economies, should create policies that define taxes as part of an entity’s CSR narrative to enhance transparency and legitimacy. In addition, the study is of immense significance to master and PhD students since it provides an agenda for future research.
... Consequently, their effectiveness may be influenced by the taxpayer's perception of the effectiveness of the government. Existing literature [70,71] shows an increase in voluntary conformity when taxpayers have a high level of trust in the government. Therefore, a discussion of our research results from this angle seems to be useful. ...
Article
Full-text available
The COVID-19 pandemic has taken its toll on the economies of the EU member states. While policymakers have been faced with rising government spending in an effort to combat the health crisis, this has led to unprecedented levels of government debt and budget deficits. Debt sustainability has been severely affected by decreasing fiscal space, and there are significant concerns that a debt crisis is looming on the horizon for the EU. The current study aims to analyze environmental taxes as a potential solution for rebuilding fiscal space and thus improving debt sustainability in the EU. The research method used to study the impact that the four types of environmental taxes may have on fiscal space is the dynamic panel regression model, estimated using the Generalized Method of Moments (GMM). The conclusions show that all four categories of environmental taxes can help the EU member states regain fiscal space and improve their debt sustainability. The research results show that the strongest positive impact on fiscal space will be achieved by energy taxes and transport taxes.
... In practicing corporate governance, relevant information needs to be published on their tax planning practices to demonstrate moral awareness, with selfexplanatory information [9]. The study from [24] reported that the quality of service, sanctions, regulations, and fines encourage taxpayer awareness and compliance. ...
... One understanding of tax avoidance is "arrangement of a transaction to obtain a tax advantage, benefit, or reduction in a manner unintended by the tax law". ( [10] Based on this understanding, it can be said that tax avoidance is used by companies to obtain profits, benefits, or reduction of taxes imposed, so companies can minimize tax obligations. That Tax avoidance affects the relevance of investor assessments on the announcement date which is evaluated through ERC. ...