Tax Ethics for Benefit Corporations

Abstract

Traditional corporations have engaged in tax mitigation schemes that have deprived society of their fair share of taxes. In defense, these corporations have argued that they owe their shareholders the duty to minimize the tax bill under all possible legal methods, even if they do not pass the smell test. Benefit corporations, on the other, strive for a higher code of ethics. The purpose of this paper is to outline certain basic tax-avoidance schemes that benefit corporations should avoid. While they may be legal and defensible (by some) for a traditional corporation, benefit corporations should avoid these schemes.