The Relationship between Corporate Social Responsibility and International Tax Avoidance
LEIDEN UNIVERSITY – LEIDEN LAW SCHOOL - WORKING PAPER APRIL 2015
15 Pages Posted: 23 Nov 2016
Date Written: April 1, 2015
This paper aims to illustrate Corporate Social Responsibility (CSR) dilemmas that multinationals face when taking international tax planning decisions. The paper, written as a chapter in a CSR-handbook for business lawyers, first provides an overview of the context in which cross-border tax issues and dilemmas arise, and identifies the relevant stakeholders and actors. The authors do not take a stance in the discussion on whether or not CSR should play a role when a multinational determines its international tax planning policy, but taking as a starting point a hypothetical multinational that wants to take CSR considerations into account, they illustrate the tax planning dilemma’s that may arise. They provide a list of factors that may be taken into account by a multinational in determining whether an international tax planning scheme is acceptable from a CSR point of view. To illustrate the relevance of their observations, the authors finish the discussion by considering three of the debate’s high-profile cases.
Keywords: corporate social responsibility, international tax planning, tax avoidance, business ethics, tax morality, CSR
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