In this article the author examines to what extent countries and enterprises have a duty to pay a fair share of taxes. The conclusion of this article is that the current debate pays too little attention to the substance of the fair share obligation. What is a fair distribution of tax revenues among countries and what constitutes a fair distribution of the tax liability among multinational companies? Interests of states and companies are intertwined and sometimes collide. States try to attract investments by introducing tax incentives, but at the same time they want to combat aggressive tax planning by multinational companies to protect their own tax base. The current policy debate requires that the States redefine the allocation mechanisms for (international) taxation. The principle of origin might be a promising concept in that respect. At the same time multinational companies must be accountable for their tax policy, but that is difficult due to the absence of a clear set of standards.
Intertax