Question.3755 - Sometimes companies move their corporate headquarters out of their home countries to countries with more favorable tax treatment. Which duty do you believe is higher, the duty of corporations to pay tax to government or the duty of corporations to pay dividends to shareholders? Be sure to explain your answer. Should the concerns of stakeholders other than shareholders be taken into account by corporations? Why are taxes often more of an issue with corporations than with other business entities?
Answer Below:
The xxxxxxx notion xx those xxxxxxxxx that xxxx their xxxxxxxxxxxx to xxxxxxxxx countries xx to xxx lower xxxxx I xxxxxxxxxx it xxxxx ethical xxxxxxxxx about xxxxxxx a xxxxxxxxxxx rsquo x duty xx pay xxxxx outweighs xxx responsibility xx maximize xxxxxxxxxxx dividends xxxxxxxxx to xx understanding x would xxxx to xxxxx that xxxxxx taxes xxxxx to xxxxxxxxx public xxxxx and xxxxxxxx that xxx critical xxx societal xxxxxxxxxx a xxxxxxxxxxx rsquo x fiduciary xxxx is xx maximize xxxxxxxxxxx wealth xxx balancing xxxxx duties xx crucial xxxxx Neely xxx Sherrer x company xxxx avoids xxxxxx its xxxx share xx taxes xxxxxxx inversions xxxxx harm xxx broader xxxxxxx by xxxxxxxxx governments xx revenue xxx moving xxx headquarters xx only x logical xxxx and xxxx companies xxxx to xxxxxxx a xxxxxxx between xxxx responsibilities xxxxxxxxxxx their xxxx in xxxxxxxxxxxx to xxxx shareholder xxxxxx and xxxxxxxx stability xxxxx Neely xxx Sherrer xxxx Often xxxxxxxxxxxx tend xx imply xxxxxxxxx local xxxxxxxxxxx particularly xxxxx involved xx operations xx the xxxxxxx or xxxxxxxxxxxx and xxxxxxxx governments x are xxxxxxxx stakeholders xxx should xx considered xxxxx making x decision xxxxx inversions xxxxx allow xxxxxxxxx to xxxxxx their xxx obligations xxxxx still xxxxxxxxxx from xxx infrastructure xxx services xxxxxx by xxxxxxxxx doesn't xxxx they xxx execise xxx ignorance xxxxxxx stakeholder xxxxxxxxx as xx could xxxx to xxxxxxxxxxxx damage xxx a xxxx of xxxxxx trust xx evidenced xx backlash xxxxxxx high-profile xxxxxxxxxx like xxxxx attempted xx Pfizer xxxxx Neely xxx Sherrer x corporation xxxxx s xxxxxxxxx success xx often xxxx to xxx well-being xx the xxxxxxx community xx which xx operates xxxxx makes xxxxxxxxxxx stakeholder xxxxxxxx a xxxxxxxxx business xxxxxxxx nbsp xxxx Coporates xxxx to xxxxxxxxxx the xxxxxxxxxx of xxxxx which xxxxx a xxxx burden xx them xxxxxxxxx their xxxxxxx trends xxx to xxx complexity xx corporate xxx systems xxx the xxxxxx nature xx multinational xxxxxxxxxxxx The x S xxxxxxxxx tax xxxxxx with xxx of xxx highest xxxxxxxxx rates xxx its xxxxxxxxx taxation xxxxx creates xxxxxxxxxx for xxxxxxxxx to xxxx tax xxxxxxxxxx through xxxxxxxxxx while xxxxx business xxxxxxxx like xxxxxxxxxxxx or xxxx proprietorships xxx often xxxxx at xxxxxxxxxx rates xx on x territorial xxxxx which xxxxxxxxx makes xxxxx tax xxxxxxxxxx simpler xxxxx Neely xxx Sherrer xxx intricate xxxxxx operations xxx scale xx corporations xxxx tax xxxxxxxxxxxx a xxxx pressing xxx complex xxxxx for xxxx nbsp xxxxxxxxxxxxxxx Neely x amp xxxxxxx L x February x Look xx Corporate xxxxxxxxxx Inside xxx Out xxxxxxx Reserve xxxx of xx Louis xxxxx www xxxxxxxxxx org xxxxxxxxxxxx regional-economist xxxxx quarter xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxMore Articles From Business Law