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1 – 4 of 4The purpose of this paper is to develop arguments for a public policy of requiring all large companies to make their tax returns publicly available. It is argued that such a…
Abstract
Purpose
The purpose of this paper is to develop arguments for a public policy of requiring all large companies to make their tax returns publicly available. It is argued that such a policy would help to check tax avoidance, strengthen public accountability and secure fair competition.
Design/methodology/approach
The policy proposal rests on notions of transparency and public accountability.
Findings
The paper argues that the proposed policy is feasible.
Research limitations/implications
The paper hopes to stimulate debates about the value of public filing of corporate returns and limits of public accountability.
Social implications
The paper extends the range of public policies which might be able to check organised tax avoidance.
Originality/value
It is one of the few papers to call for public filings of large company tax returns.
Details
Keywords
Considering the growing importance of finance in shaping corporate and human activities, the purpose of this paper is to focus on the United Nations Environment Programme (UNEP…
Abstract
Purpose
Considering the growing importance of finance in shaping corporate and human activities, the purpose of this paper is to focus on the United Nations Environment Programme (UNEP) Inquiry into the Design of a Sustainable Financial System that aims to align the financial system with sustainable development, with a focus on environmental aspects. Following the inquiry call for better disclosure approaches of material information on the “sustainability impacts” of the financial system as one of the areas of improvement to move toward a sustainable financial system, the author argues for a reform of the accounting model to better reflect the compliance of businesses with “quality of growth” imperatives.
Design/methodology/approach
The paper rests on the entity theory of Littleton (1934).
Findings
The new accounting model requires creating a new equity capital account for the entity that is separate from the shareholders equity account. Valuation as well as other related issues on the functioning of this account is briefly explored in the paper. The reform also requires entrusting the responsibility of answering questions related to valuation, capital maintenance and income distribution to the board of directors that should be composed of representatives of the different capitals which have accrued, temporarily or indefinitely, to the business firm.
Research limitations/implications
This paper calls researchers to explore the theoretical avenues proposed in the paper to develop the model in practice.
Practical implications
The implementation of this reform requires a regulatory reform and the redesign of the economic coordination mechanisms which could be challenging in practice.
Social implications
The accounting model proposed in the paper contributes to a new quality of growth, which is a growth based on well-being and inclusiveness.
Originality/value
The paper draws on the UNEP framework, which has not been investigated in other research studies.
Details