Reshape tax system to encourage ethical behaviour

The focus on taxing corporate profits needs to widen to encourage ethical and sustainable business behaviours says the Association of Chartered Certified Accountants (ACCA).

In a new paper Where next for tax and ethics in the 21st century? the association argues that the current focus of most tax systems across the world on financial profits is too narrow.

Jason Piper head of tax and business law at ACCA and author of the paper said: ‘Corporations could be taxed on a basis that tries to reflect their overall impact rather than just their financial results. Up to now profit has been seen as the best basis for taxing enterprises. But now it may be the time for change: where financial results should not be the only yardstick of success and therefore not the only way tax on corporates is levied.’

The paper notes...