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Synopsis: Any decision by a company on how it applies its profits – to pay tax, remuneration or shareholder returns – has ethical implications. Shareholders are entitled to earn a return, and accepted asset allocation methods can help promote equality of opportunity, but will irreconcilably conflict with wider concerns about inequality. Governments have failed to adapt legislation to match the business environment, notably with regard to the internet and globalisation, and have used tax as a source of comparative advantage while at the same time criticizing companies for tax avoidance.
Sharing Profit