Field-Level Legitimization of Corporate Tax Minimization

Abstract

Since the recent Global Financial Crisis (GFC) attention on corporate fiscal contributions has grown substantially and discussion of the appropriateness of corporate tax practices is now part of the Corporate Social Responsibility (CSR) agenda (Hardeck & Hertl, 2014; Preuss, 2012; Sikka, 2010). The alleged irresponsibility of current corporate tax practices has been documented in the international press (e.g. The Economist, 2016) and some corporates have responded by disclosing tax contributions in their non-financial reports to show their positive impacts on society (PricewaterhouseCoopers, 2010). Such responses have been criticized as merely cosmetic attempts to cover up systematic irresponsibility that is manifested in the (ab)use of international tax loopholes (Ylonen & Laine, Forthcoming). Notwithstanding the value of these critiques, ‘day-to-day’ tax minimization remains unquestioned and is essentially regarded as good business practice (Brown, 2011). This might be the case because, as Dowling suggests, “the payment of tax is not viewed as socially responsible in the way that other CSR activities are” (2014: 8).