WEEK 3 CASE STUDIES

WEEK 3 CASE STUDIES - LCS - Week 3 Does the accounting...

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Dilemma: The managing director has approached you regarding the transfer of some of your company's business activities offshore to a known tax haven. He has had discussions with some colleagues who have advised that their companies have undertaken similar transfers of assets and business, which have resulted in substantial tax benefits. You have been asked to advise on the likely ethical consequences of such a plan. What is a tax haven? What has tax got to do with CSR? How might Stakeholder Theory be relevant? What tax obligations does the business have? Is tax part of corporate governance? What are the risks to long-term profitability? Does the accounting profession give guidance on professional ethics? LCS - Week 3 Adapted from: CPA InTheBlack February 2008 page 59
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Ethical dilemma - February 2008 Dilemma: The managing director has approached you regarding the transfer of some of your company's business activities offshore to a known tax haven. He has had discussions with some colleagues who have advised that their companies have undertaken similar transfers of assets and business, which have resulted in substantial tax benefits. You have been asked to advise on the likely ethical consequences of such a plan. Answer: First, it is necessary to clearly understand what is meant by 'tax haven' in this instance. The OECD identifies countries as tax havens if they exhibit the following three characteristics: z no or only nominal taxes z lack of transparency z lack of effective information exchange
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WEEK 3 CASE STUDIES - LCS - Week 3 Does the accounting...

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