The Tax Justice Network has written to chief executives of FTSE 100 listed companies, drawing attention to a legal opinion which says that company directors have no fiduciary duty to avoid tax.
The Tax Justice Network has written to chief executives of FTSE 100 listed companies, drawing attention to a legal opinion which says that company directors have no fiduciary duty to avoid tax. The opinion, prepared for the campaigning body by law firm Farrer & Co, states that: ‘The idea of a strictly “fiduciary” duty to avoid tax is wholly misconceived’.
Barrister David Quentin, who was involved in drafting the opinion (and who now works at Stone King), said: ‘When companies talk about being under a duty to shareholders to mitigate tax, they are not telling the whole story. Board level executives often benefit from performance-related reward packages, which are indirectly affected by the amount of tax the company pays. Corporate tax avoidance is presented as a matter of high-minded “fiduciary” duty, but it is probably better understood as being about personal reward.’
The Tax Justice Network has written to chief executives of FTSE 100 listed companies, drawing attention to a legal opinion which says that company directors have no fiduciary duty to avoid tax.
The Tax Justice Network has written to chief executives of FTSE 100 listed companies, drawing attention to a legal opinion which says that company directors have no fiduciary duty to avoid tax. The opinion, prepared for the campaigning body by law firm Farrer & Co, states that: ‘The idea of a strictly “fiduciary” duty to avoid tax is wholly misconceived’.
Barrister David Quentin, who was involved in drafting the opinion (and who now works at Stone King), said: ‘When companies talk about being under a duty to shareholders to mitigate tax, they are not telling the whole story. Board level executives often benefit from performance-related reward packages, which are indirectly affected by the amount of tax the company pays. Corporate tax avoidance is presented as a matter of high-minded “fiduciary” duty, but it is probably better understood as being about personal reward.’
