Corporate+citizenship

**Definition of ”Corporate Citizenship”**
corporate citizenship, also called Corporate social responsibility (**CSR).** There are many version of CSR definition.Such as - The European Commission definition - It is a form of corporate self-regulation integrated into a business model. -Company need to ensure their business meets not only the legal and economic requirements, also there are increasing attention of social and ethical demand from stakeholders. - In accordance to taxation, the Corporate citizenship implies that enterprises should comply with the tax laws and regualtions in all countries in which they operate. toc

In recent years ,there are more and more companies used the concept of “corporate citizenship”(CC), It is more focus on the idea of citizenship, to use the concept to build up the company positive image, but only paid limited attention to the actual notion of citizenship. It has been a discussion on the topic that "Can corporations be citizens"?

**Definition of “Tax”**
Taxes are what we pay for civilized society” from Oliver Wendell Holmes

Taxes are a fee charged by a government on a product, income or activity. Taxes also are essential for functioning of the state and society. -Investment in social infrastructure - Finance public goods: healthcare, education, transport - Support Capitalism and social development

Paying taxes is perhaps the most fundamental way in which private and corporate citizens engage with broader society. Tax revenues are the lifeblood of the social contract,vital to the development and maintenance of physical infrastructure and to the sustenance of the infrastructure of justice that underpins liberty and the market economy.

**Taxation and Corporate Citizenship **
Paying tax is everyone’s responsibility. Company as a member of the security, shall bare the same responsibility as individual person. As Company takes “corporate citizenship” role, in the taxation area, it means that company need to compliance it by paying tax and fulfills their taxation responsibility. And that is the minimum requirement as fulfilling the legal requirement.

No matter for the company operates in their native country, also applies to the multinational enterprises.

As those multinational companies operate in different countries, each country has its own taxation rule and regulation. Especially operates in the developing countries. The developing countries usually offer many taxation benefits policy for few years, in order to attract more foreign capital investment. Company doesn’t need to pay tax during those years, and that is legal. Many companies minimized tax through elaborate and frequently aggressive tax-avoidance and tax planning.

Different views have different implications for the issue of tax and CSR. No matter which views, It is important that companies contribute to the public finances by making timely payment of their tax liabilities. In particular, companies should comply with both the letter and spirit of the tax laws and regulations of the countries in which they operate.

And so far there is no joint corporation on the taxation issues between the countries, there is no unified principle or standard for the corporation standard. So from one hand it is difficult to identify that whether the multinational enterprise fulfill their responsibility. at the other hand it is also difficult for company to define which tax law they shall follow. <span style="font-family: 'Calibri','sans-serif'; font-size: 15px;">Companies should consider how their chosen approach to citizenship applies to all aspects of their activity, including the management of their tax liability. Company shall have tax policy inside the company to proper guide the company to compliance different tax law and requirements, to have internal audit system that check and advice any kind of incompliance. The tax policy shall be link to the risk management and up to the strategy level.

<span style="font-family: 'Calibri','sans-serif'; font-size: 15px;">Also Company shall have good corporation with the tax authority and be transparency share the tax information upon the requirement where they operates. <span style="font-family: 'Calibri','sans-serif'; font-size: 15px;">It is very important issues for the corporate citizenship and taxation to transfer the pricing.