Good tax governance

Abstract

Tax is a moral phenomenon. Enterprises bear responsibility for the fairness and integrity of the international tax system. This responsibility cannot be reduced to strict rule following (applying black letter law). CSR and good tax governance entail voluntarily going beyond the mandatory tax obligations. The substantive element of good tax governance concerns the amount of tax that a company pays and Companies should avoid morally irresponsible tax behavior and strive to comply with the spirit of the law. The procedural element of good tax governance concerns public tax transparency. Both should be an expression of an internal moral commitment, rather than a calculated response to external pressures