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

See all articles by Tanja Bender

Tanja Bender

Leiden University - Department of Tax Law and Economics

Dirk Broekhuijsen

Leiden University - Leiden Law School

Date Written: April 1, 2015

Abstract

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

Suggested Citation

Bender, Tanja and Broekhuijsen, Dirk, The Relationship between Corporate Social Responsibility and International Tax Avoidance (April 1, 2015). LEIDEN UNIVERSITY – LEIDEN LAW SCHOOL - WORKING PAPER APRIL 2015. Available at SSRN: https://ssrn.com/abstract=2873611 or http://dx.doi.org/10.2139/ssrn.2873611

Tanja Bender (Contact Author)

Leiden University - Department of Tax Law and Economics ( email )

Steenschuur 25 PO Box 9520
Leiden, 2300 RA
Netherlands

Dirk Broekhuijsen

Leiden University - Leiden Law School ( email )

P.O. Box 9520
2300 RA Leiden, NL-2300RA
Netherlands

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