Maria Papapanagiotou has published in Academia.edu an amazing paper on International Tax Avoidance : Business Structures and Ethics (you need to register to download a free copy of the full text).
The author ” focuses on corporate tax avoidance and examines various ways in which multinationals structure their businesses in order to minimize their overall tax burden. Further, it champions the right of the taxpayers to arrange their financial affairs in a way which lowers the payable tax and considers corporate tax avoidance as a part and parcel of business planning. This paper is organized as follows: Chapter one introduces the reader to corporate tax avoidance and provides a brief introductory overview on the topic. Chapter two discusses various ways in which multinational corporations structure their businesses in order to reduce their overall tax burden as well as the OECD’s response to the issue. Chapter 3 explores various arguments regarding the morality of tax minimization techniques including the author’s own views and ideas. Chapter 4 offers a summary of the arguments and draws conclusions from the findings in the previous chapters”.
The paper concludes that:
“In these difficult economic times, the uncover of tax avoidance schemes employed by global companies in order to reduce their tax liability, have gained much publicity and faced social and legal condemnation. As a consequence, Multinational Corporations involved in tax avoidance schemes, faced a barrage of criticism, widespread boycott and reputation damage. Whether tax avoidance is legal or not is ultimately a question of morality. International Organizations, such as the OECD in co-operation with the European Commission have deepened their commitments to fight against International tax avoidance. The solution must be simplifying the tax system, achieving greater transparency as well as co-operation and exchange of information between all States. Most importantly, national tax Laws need to be fine tuned in order to keep up with the globalisation of corporations and the digital era”.
I do not share all the viewpoints of Maria Papapanagiotou but I agree with her conclusion. Please, read the full article. It is worth it.