Codes of conduct as a means to manage ethical tax governance

Hans Gribnau, Eelco Van der Enden, Kuralay Baisalbayeva

Research output: Contribution to journalArticleScientificpeer-review

Abstract

In recent years international taxation has become a hotly disputed topic. Luxleaks, Pamana papers, Paradise Papers, State Aid-cases, etc. received a lot of media coverage. As a result, tax is at the top of the political agenda of for example the G20, OECD and EU and many substantial changes are taking place. Rebuilding trust among major stakeholders is crucial for a sustainable international infrastructure in respect of taxation.
The current unrest with regard to multinational companies’ tax planning practices shows that society demands companies to integrate tax governance in their corporate governance. Society demands moral evaluation of tax planning practices - even if it is legal tax avoidance, aimed at minimising companies’ tax liability. Companies do well, therefore, to integrate ethical risks with regard to tax in their risk management. Paying taxes and morality are apparently connected. This article will elaborate on the moral dimension of paying taxes.
Tax administrations are also interested in the governance of taxation, because the tax behaviour of multinational enterprises can indicate much regarding their acceptance of risk and attitude towards tax planning. But how can they trust that multinational companies are complying with the law and want to build a good relationship with tax administrations and society? We focus on tax codes of conduct which are currently used by companies and regulators in an attempt to obtain greater control over economic and social relationships. Corporations publish codes to communicate their standards of ethical behaviour internally and externally - enabling (moral) evaluation by stakeholders. Tax codes of conduct relate to tax risks and substantive and procedural ethical norms. May be tax codes of conduct are a way to meet stakeholder needs with regard to tax in the current highly politicized and mediatised environment.
Original languageEnglish
Pages (from-to)390-407
Number of pages18
JournalIntertax
Volume46
Issue number5
Publication statusPublished - May 2018

Fingerprint

taxes
governance
taxation
Governance
Tax
Codes of conduct
planning practice
stakeholder
political agenda
corporate governance
evaluation
risk management
OECD
morality
liability
corporation

Keywords

  • tax fairness
  • tax planning
  • multinational corporations
  • moral agency
  • ethical culture
  • moral climate
  • Corporate Social Responsibility
  • corporate governance
  • transparency
  • soft law
  • self-regulation
  • codes of conduct
  • tax governance
  • risk management
  • tax compliance

Cite this

Gribnau, H., Van der Enden, E., & Baisalbayeva, K. (2018). Codes of conduct as a means to manage ethical tax governance. Intertax, 46(5), 390-407.
Gribnau, Hans ; Van der Enden, Eelco ; Baisalbayeva, Kuralay. / Codes of conduct as a means to manage ethical tax governance. In: Intertax. 2018 ; Vol. 46, No. 5. pp. 390-407.
@article{f298c127031b45adae1ee99af39e06f7,
title = "Codes of conduct as a means to manage ethical tax governance",
abstract = "In recent years international taxation has become a hotly disputed topic. Luxleaks, Pamana papers, Paradise Papers, State Aid-cases, etc. received a lot of media coverage. As a result, tax is at the top of the political agenda of for example the G20, OECD and EU and many substantial changes are taking place. Rebuilding trust among major stakeholders is crucial for a sustainable international infrastructure in respect of taxation. The current unrest with regard to multinational companies’ tax planning practices shows that society demands companies to integrate tax governance in their corporate governance. Society demands moral evaluation of tax planning practices - even if it is legal tax avoidance, aimed at minimising companies’ tax liability. Companies do well, therefore, to integrate ethical risks with regard to tax in their risk management. Paying taxes and morality are apparently connected. This article will elaborate on the moral dimension of paying taxes. Tax administrations are also interested in the governance of taxation, because the tax behaviour of multinational enterprises can indicate much regarding their acceptance of risk and attitude towards tax planning. But how can they trust that multinational companies are complying with the law and want to build a good relationship with tax administrations and society? We focus on tax codes of conduct which are currently used by companies and regulators in an attempt to obtain greater control over economic and social relationships. Corporations publish codes to communicate their standards of ethical behaviour internally and externally - enabling (moral) evaluation by stakeholders. Tax codes of conduct relate to tax risks and substantive and procedural ethical norms. May be tax codes of conduct are a way to meet stakeholder needs with regard to tax in the current highly politicized and mediatised environment.",
keywords = "tax fairness, tax planning, multinational corporations, moral agency, ethical culture, moral climate, Corporate Social Responsibility, corporate governance, transparency, soft law, self-regulation, codes of conduct, tax governance, risk management, tax compliance",
author = "Hans Gribnau and {Van der Enden}, Eelco and Kuralay Baisalbayeva",
year = "2018",
month = "5",
language = "English",
volume = "46",
pages = "390--407",
journal = "Intertax",
issn = "0165-2826",
publisher = "Kluwer Law International",
number = "5",

}

Gribnau, H, Van der Enden, E & Baisalbayeva, K 2018, 'Codes of conduct as a means to manage ethical tax governance', Intertax, vol. 46, no. 5, pp. 390-407.

Codes of conduct as a means to manage ethical tax governance. / Gribnau, Hans; Van der Enden, Eelco; Baisalbayeva, Kuralay.

In: Intertax, Vol. 46, No. 5, 05.2018, p. 390-407.

Research output: Contribution to journalArticleScientificpeer-review

TY - JOUR

T1 - Codes of conduct as a means to manage ethical tax governance

AU - Gribnau, Hans

AU - Van der Enden, Eelco

AU - Baisalbayeva, Kuralay

PY - 2018/5

Y1 - 2018/5

N2 - In recent years international taxation has become a hotly disputed topic. Luxleaks, Pamana papers, Paradise Papers, State Aid-cases, etc. received a lot of media coverage. As a result, tax is at the top of the political agenda of for example the G20, OECD and EU and many substantial changes are taking place. Rebuilding trust among major stakeholders is crucial for a sustainable international infrastructure in respect of taxation. The current unrest with regard to multinational companies’ tax planning practices shows that society demands companies to integrate tax governance in their corporate governance. Society demands moral evaluation of tax planning practices - even if it is legal tax avoidance, aimed at minimising companies’ tax liability. Companies do well, therefore, to integrate ethical risks with regard to tax in their risk management. Paying taxes and morality are apparently connected. This article will elaborate on the moral dimension of paying taxes. Tax administrations are also interested in the governance of taxation, because the tax behaviour of multinational enterprises can indicate much regarding their acceptance of risk and attitude towards tax planning. But how can they trust that multinational companies are complying with the law and want to build a good relationship with tax administrations and society? We focus on tax codes of conduct which are currently used by companies and regulators in an attempt to obtain greater control over economic and social relationships. Corporations publish codes to communicate their standards of ethical behaviour internally and externally - enabling (moral) evaluation by stakeholders. Tax codes of conduct relate to tax risks and substantive and procedural ethical norms. May be tax codes of conduct are a way to meet stakeholder needs with regard to tax in the current highly politicized and mediatised environment.

AB - In recent years international taxation has become a hotly disputed topic. Luxleaks, Pamana papers, Paradise Papers, State Aid-cases, etc. received a lot of media coverage. As a result, tax is at the top of the political agenda of for example the G20, OECD and EU and many substantial changes are taking place. Rebuilding trust among major stakeholders is crucial for a sustainable international infrastructure in respect of taxation. The current unrest with regard to multinational companies’ tax planning practices shows that society demands companies to integrate tax governance in their corporate governance. Society demands moral evaluation of tax planning practices - even if it is legal tax avoidance, aimed at minimising companies’ tax liability. Companies do well, therefore, to integrate ethical risks with regard to tax in their risk management. Paying taxes and morality are apparently connected. This article will elaborate on the moral dimension of paying taxes. Tax administrations are also interested in the governance of taxation, because the tax behaviour of multinational enterprises can indicate much regarding their acceptance of risk and attitude towards tax planning. But how can they trust that multinational companies are complying with the law and want to build a good relationship with tax administrations and society? We focus on tax codes of conduct which are currently used by companies and regulators in an attempt to obtain greater control over economic and social relationships. Corporations publish codes to communicate their standards of ethical behaviour internally and externally - enabling (moral) evaluation by stakeholders. Tax codes of conduct relate to tax risks and substantive and procedural ethical norms. May be tax codes of conduct are a way to meet stakeholder needs with regard to tax in the current highly politicized and mediatised environment.

KW - tax fairness

KW - tax planning

KW - multinational corporations

KW - moral agency

KW - ethical culture

KW - moral climate

KW - Corporate Social Responsibility

KW - corporate governance

KW - transparency

KW - soft law

KW - self-regulation

KW - codes of conduct

KW - tax governance

KW - risk management

KW - tax compliance

M3 - Article

VL - 46

SP - 390

EP - 407

JO - Intertax

JF - Intertax

SN - 0165-2826

IS - 5

ER -

Gribnau H, Van der Enden E, Baisalbayeva K. Codes of conduct as a means to manage ethical tax governance. Intertax. 2018 May;46(5):390-407.