The Shareholder Response to Corporate Tax Planning Advice Regulation

2020 ◽  
Author(s):  
Michael P. Donohoe ◽  
Brian Gale ◽  
Michael Mayberry
Keyword(s):  
Tax Planning ◽  
Corporate Tax

Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning

2015 ◽  
Vol 30 (4) ◽  
pp. 311-327 ◽  
Author(s):  
Megan F. Hess ◽  
Raquel Meyer Alexander
Keyword(s):  
Real World ◽  
Ethical Issues ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Learning Assessment ◽  
Class Discussion ◽  
Corporate Tax ◽  
Tax Havens ◽  
Multinational Organizations ◽  
The U.S

ABSTRACT This instructional case explores the ethical issues surrounding the corporate tax-planning and tax-avoidance strategies of multinational organizations. Drawing on the real-world experiences of SABMiller, one of the world's largest beverage companies, this case provides a launching point for students to consider the ethics of corporate tax planning. The ethics of multinational tax practices, especially the use of tax havens, has recently become the focus of media and legislative debate in both the U.S. and the U.K., and many well-respected companies, such as General Electric, Apple Inc., and Starbucks are now feeling the pressure to reform. In a post-case learning assessment, students demonstrated significant improvement in their understanding and indicated that they enjoyed discussing this controversial issue. The “Implementation Guidance” section and Teaching Notes offer guidance for in-class discussion of the ethical and tax issues in this case.

scholarly journals Research on the Role of Tax Planning in Preventing Corporate Tax Risks

2020 ◽  
Vol 4 (4) ◽  
pp. 156
Author(s):  
Yuting Guo ◽  
Qiuping Ouyang ◽  
Min Peng
Keyword(s):  
Business Process ◽  
Tax Planning ◽  
Business Development ◽  
Tax Burden ◽  
Corporate Tax ◽  
Laws And Regulations

<p>Paying taxes according to laws and regulations in the process of business development is an obligation of companies. It is a vital task for companies to reduce tax burden by reasonably applying laws, regulations and policies, which requires tax planning. This article explores the relevant contents of corporate tax planning and tax risks. Firstly, it briefly expounds tax risks and tax planning, then analyzes the causes of tax risks. Finally, the measures are put forward to avoid tax risks in the business process affecting the development of companies.</p>

Expertise in Corporate Tax Planning: The Issue Indentification Stage

1992 ◽  
Vol 30 ◽  
pp. 1 ◽  
Author(s):  
Sarah E. Bonner ◽  
Jon S. Davis ◽  
Betty R. Jackson
Keyword(s):  
Tax Planning ◽  
Corporate Tax

Voluntary Disclosure Responses to Mandated Disclosure: Evidence from Australian Corporate Tax Transparency

2021 ◽  
Author(s):  
Allison Kays
Keyword(s):  
Voluntary Disclosure ◽  
Tax Planning ◽  
Public Disclosure ◽  
Corporate Tax ◽  
Public Firms ◽  
Additional Information ◽  
Proprietary Costs ◽  
Tax Returns ◽  
Disclosure Responses ◽  
Reputational Costs

In order to deter aggressive tax planning, the Australian government mandated public disclosure of three line items from large corporations' tax returns. However, there is no evidence that the mandated disclosure led public firms to pay more taxes (Hoopes, Robinson, and Slemrod 2018). Instead, I find that firms strategically offset expected reputational costs by voluntarily issuing supplemental information. Specifically, when managers expect new reputational costs from the mandated tax return disclosure (wherein the disclosure reveals an unexpectedly low tax liability) and low proprietary costs from a supplemental voluntary disclosure (wherein the firm discloses its nonaggressive tax planning), firms are likely to voluntarily disclose information that both preempts and supplements the government's mandatory disclosure. Thus, when mandatory disclosures are incomplete, firms will voluntarily issue additional information to remain in control of their disclosure environments.

The Effect of the Formulary Apportionment System on State-Level Economic Development and Multijurisdictional Tax Planning

1999 ◽  
Vol 21 (s-1) ◽  
pp. 42-57 ◽  
Author(s):  
Teresa Lightner
Keyword(s):  
Economic Development ◽  
Employment Growth ◽  
Recent Trend ◽  
State Level ◽  
Tax Planning ◽  
Negative Association ◽  
Percentage Change ◽  
Corporate Tax ◽  
Tax Rate ◽  
Manufacturing Employment

This paper examines the effect of the formulary apportionment system on state-level economic development. All three apportionment factors, when combined with the corporate tax rate employed by each state, are shown to have a significant negative association with the percentage change in manufacturing employment. However, further analysis suggests that the corporate tax rate, and not the apportionment formula, may be driving employment growth. Also, the findings do not support the importance of the throwback rule or the recent trend to overweight the sales factor in attracting economic development to a state.

Board Risk Oversight and Corporate Tax-Planning Practices

2020 ◽  
Author(s):  
Mark S Beasley ◽  
Nathan C. Goldman ◽  
Christina Lewellen ◽  
Michelle McAllister
Keyword(s):  
Board Of Directors ◽  
Tax Planning ◽  
Enterprise Risk Management ◽  
Corporate Tax ◽  
Management Framework ◽  
Risk Management Framework ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Tax Benefits ◽  
Risk Oversight

Risk oversight by the board of directors is a key component of a firm's enterprise risk management framework, and recently, boards have paid more attention to their firm's tax-planning activities. In this study, we use a hand-collected sample of proxy statement disclosures about the board's role in risk oversight and provide evidence that risk oversight is negatively associated with both tax uncertainty and overall tax burdens. We find that risk oversight is most strongly associated with positions that yield permanent tax benefits and also with less risky tax-planning activities. Overall, the evidence suggests that board risk oversight is associated with more effective tax-planning practices.

Interrogating the Relationship between “Legally Defensible” Tax Planning and Social Justice

2019 ◽  
pp. 347-366
Author(s):  
Daniel Shaviro
Keyword(s):  
Social Justice ◽  
Tax Planning ◽  
Corporate Tax ◽  
Tax Professionals ◽  
The Relationship

This chapter assesses where the ethical lines should be drawn around what constitutes “legally defensible tax planning,” given social justice imperatives. Because tax minimization by wealthy individuals and profitable corporations does not involve blatant fraud, one cannot simply call for “good corporate tax behavior” and criticize the ethics of those tax professionals who aid and abet the fraud. The tax-reducing strategies of super-rich individuals and highly profitable corporations commonly qualify as what will be called “legally defensible.” This term, however, covers tax planning that may vary across a range in at least three important dimensions: likelihood of legal correctness; consistency with legislative or regulatory intent; and ordinary course of business versus carefully contrived.

Strategic reactions in corporate tax planning

2019 ◽  
Vol 68 (1) ◽  
pp. 101232 ◽  
Author(s):  
Christopher S. Armstrong ◽  
Stephen Glaeser ◽  
John D. Kepler
Keyword(s):  
Tax Planning ◽  
Corporate Tax ◽  
Strategic Reactions

scholarly journals A Real Option Approach to Sustainable Corporate Tax Behavior

2020 ◽  
Vol 12 (13) ◽  
pp. 5406
Author(s):  
Anne Van de Vijver ◽  
Danny Cassimon ◽  
Peter-Jan Engelen
Keyword(s):  
Real Option ◽  
Action Plan ◽  
Tax Planning ◽  
Corporate Tax ◽  
Real Option Theory ◽  
Policy Interventions ◽  
Real Option Approach ◽  
Development Goals ◽  
Option Theory ◽  
Option Value Of Waiting

Aggressive tax planning has become a sustainability problem, as governments have to cope with less tax revenue, which is crucial for investments in sustainable development goals. The OECD and the EU authorities have taken several initiatives against aggressive tax planning, such as the Action Plan against BEPS. However, these initiatives lack effectiveness, and aggressive tax planning is still omnipresent. We analyze the fight against aggressive corporate tax planning from a Real Option Theory perspective, in order to find an explanation for the difficult shift of companies’ aggressive tax planning strategies to more sustainable tax behavior. The Real Option Theory shows that, as long as the option to ‘delay’ the investment in sustainable tax behavior has too much value because the benefits of such investment are uncertain, companies will wait. Based on this new understanding, we suggest additional public policy interventions against aggressive tax planning. These interventions aim directly at reducing this real option value (of waiting).

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