University of Michigan Legal Working Paper Series
Working Papers 2003-2010
Corporate Social Responsibility and Strategic Tax Behavior
Abstract
This paper addresses two questions. First, from the perspective of the corporation, should the corporation cooperate and pay the corporate tax, or should it engage in “strategic” tax behavior designed to minimize or eliminate its corporate tax burden? Second, from the perspective of the state, should the state use the corporate tax just to raise revenue, or should it also try to use it as a regulatory tool to steer corporate behavior in directions that it deems beneficial to society? The paper argues that whatever our view of the nature of the corporation and of the legitimacy of corporate social responsibility, corporations should not be permitted to engage in strategic behavior that is designed solely to minimize their taxes, while the state should use the corporate tax as a regulatory tool.
Subject Area
Corporations
Recommended Citation
Reuven S. Avi-Yonah,
"Corporate Social Responsibility and Strategic Tax Behavior"
(December 2006).
University of Michigan Legal Working Paper Series.
Working Papers 2003-2010.
Working Paper 65.
http://law.bepress.com/umichlwps/olin/art65
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