By Raj Thamotheram

“Stripped of all its complexity, the fundamental question about corporate tax is whether investors want increased profitability by avoiding tax or the alternative, which is a race to the bottom. Many investors have colluded with this race, mostly passively. But big changes are underway and EU investment professionals would be unwise to ignore them.

Jason Ward, founder and principal analyst at CICTAR, an NGO that advocates national and global tax reforms, tells of how he raised a tax concern with a large asset owner in 2012; the fund said tax minimisation was part and parcel of how investment managers delivered good returns. That fund is now supportive of responsible tax practices. Materiality is, most certainly, a dynamic concept!”

Read more on the Investment & Pensions Europe website.