Responsible Tax in Multinational Enterprises – Why and How? (Ansvarlig Skat I Multinationale Koncerner – Hvorfor Og Hvordan?)

24 Pages Posted: 28 Feb 2020

Date Written: February 27, 2020

Abstract

In the first part of the paper, it is argued that multinational enterprises (MNEs) may benefit from including considerations of corporate responsibility when determining their tax planning behavior. The conclusion mainly rests on the fact that increased awareness of responsible tax behavior may shed useful light on the damaging effects aggressive tax planning may have on an MNE’s reputation. In addition, an increased focus on responsible tax behavior may assist the MNE’s management in maximizing shareholder welfare - and not only shareholder value. Against this background, the second part of the paper is devoted to an analysis of how MNEs actually can implement and design their own tax policy/strategy in responsible manner. Finally, in the third part of the paper, the author tries to take stock of the current endeavors of Danish-based MNEs with respect to implementation of responsible tax policies. In this context, and based on a review of publicly available information gathered from MNEs forming part of the OMX Copenhagen 25 Index, it is concluded that the largest Danish-based MNEs currently show solid appetite for implementing policies on responsible tax and that some of these policies actually make up good examples of how to design public tax policies/strategies.

Keywords: Responsible tax, Corporate social responsibility, Tax planning, Public tax policy

JEL Classification: K34, H21, M14

Suggested Citation

Koerver Schmidt, Peter, Responsible Tax in Multinational Enterprises – Why and How? (Ansvarlig Skat I Multinationale Koncerner – Hvorfor Og Hvordan?) (February 27, 2020). Copenhagen Business School, CBS LAW Research Paper No. 20-02, Available at SSRN: https://ssrn.com/abstract=3545410 or http://dx.doi.org/10.2139/ssrn.3545410

Peter Koerver Schmidt (Contact Author)

Copenhagen Business School - CBS Law ( email )

Porcelaenshaven 18B, 1 floor
Frederiksberg 2000
Denmark

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