Responsible+tax

Responsible tax is a concept within corporate social responsibility. All corporations are responsible and even obliged to pay taxes. However, many corporations take advantage of loop holes within the tax law, which leads to tax avoidance and tax evasion. The context responsible tax can be linked to morality and good will, since it is up to the managers to choose their own way of tax planning.  Taxation is a way for the corporation to contribute to the society and a sustainable financial development. The responsibility is shared between the government and the corporations. The government has to make sure that the system is understandable. It has to make sure that the corporations are encouraged to recognize their contribution to the economy. The company, therefore, has to have the understanding of the importance of taxes and be willing to contribute.

History
With the time taxpayers are becoming more responsible. This behavior can be explained with economical scandals, e.g. Enron and Worldcom. Greed has led to fraud and has had many negative societal and economic consequences. Unemployment and loss of pension and a destroyed reputation is why task risk managemenet is becoming more essential, especially for Multinations. Another reason for the increase of responsible behavior is the drop of Google stock as a result of poor tax management. Irresponsible tax behavior can even damage the shareholders.  Responsible tax is therefore not only a way to save the reputation of the company it is also about the willingness to be social responsible.

Responsible tax from corporations perspective
For corporations responsible tax is about finding a strategy that delivers sustainable outcome, that is both right for the business, and that would feel right if they would be spotlighted by media. Furthermore, the strategy has to fit the risk management strategy and align the business and its aims. The strategy involves the following steps:  Reviewing tax strategies is about comparing the policies of the company, e.g. corporate social responsibility, and to take a look at the tax risk profile. The aim is to find a suitable combination of the policies and the tax profile.  If differences emerge, these should be worked on and closed. It is about considering changes and to have a long-term perspective. Strategic approach and policy framework need to be reconsidered and adapted to the changing environment. These changes of strategies, have to be well considered and the possible effects have to be analyzed. What impact does the change have financially? Does it affect the reputation of the company? Might it change the interest of the stakeholders like investors, customers and the government? Communication the strategy is about reaching transparency within in the organization. The key elements of the strategy has to be well explained to everyone affected by the strategy.  Creating a long-term strategy is about making sure, that relevant decisions are made and that they suit the business. Considerations about how the strategy will be brought to life day to day should also be made, including the investors, consumers and employees.
 * Reviewing current tax strategies
 * <span style="font-family: Arial,Helvetica,sans-serif;">Working on how to close difference emerges
 * <span style="font-family: Arial,Helvetica,sans-serif;">Communicating the strategy
 * <span style="font-family: Arial,Helvetica,sans-serif;">Creating a long-term strategy