Globalization, Taxation and Ethical Dilemmas - The Vodafone Case

• In Event: Discussions in Teaching, Learning and Curriculum

Abstract

The case based on the experiences of Vodafone, presents perspectives on international taxation, FDI strategy, and tax planning that avails of tax differences between tax jurisdictions. Followed widely by accountants, tax and legal professionals globally, the Vodafone case sets out important tax case precedents, while bringing together a range of issues, from global strategy to capital tax and tax havens. The relevance of the case transcends the immediate legislative questions to highlight the impact of market forces on globalization and the multiple stakeholder views on the ethical questions such as tax competition confronting global corporations. The case also highlights the complex role of the accountant and tax practitioner who need to distinguish legitimate tax planning from tax evasion, distinctions with moral, financial and reputational implications for MNEs and for their own professional careers. Overall, the case brings out several themes suitable for a global course in accounting.

Author

• George Joseph, University of Massachusetts-Lowell