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Journal of Business Ethics
Published in: Journal of Business Ethics 1/2020

19-12-2018 | Original Paper

Ethics of Tax Interpretation

Author: Daniel T. Ostas

Published in: Journal of Business Ethics | Issue 1/2020

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Abstract

This article joins a somewhat nascent, but growing, body of scholarship addressing the ethical obligation to pay tax. The analysis is grounded to the ethical duty to obey law generally and highlights two competing orientations to statutory interpretation. The norms of self-interested advocacy suggest that tax planners should assert that interpretation that will generate the most wealth for the client. The norms of professional advising, by contrast, direct the tax planner to interpret tax law with reference to plain meaning, interpretive maxims, court precedents, and legislative purpose. When the two orientations differ, the ethical duty to obey law requires the tax planner to recommend, and for the taxpayer to follow, the latter view. Case studies drawn from a Louisiana sales tax avoidance scheme and from Google’s profit-shifting activities illustrate the ethical issues incumbent in tax interpretation.
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Metadata
Title
Ethics of Tax Interpretation
Author
Daniel T. Ostas
Publication date
19-12-2018
Publisher
Springer Netherlands
Published in
Journal of Business Ethics / Issue 1/2020
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI
https://doi.org/10.1007/s10551-018-4088-7

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