Donations and Tax: The Corporate Conundrum

Book Overview

This book examines the concept and functions of corporate charitable donations, examining the key tax policy considerations in the design of philanthropic regimes.

Key Themes and Topics

This book focuses on the functions and concept of corporate charitable donations.

Charitable giving has been a longstanding societal practice and will continue to be in the future. However, the traditional perception of corporate charitable donations as purely altruistic and non-commercial actions is outdated. A common misconception persists about the lack of economic benefits for corporations engaging in charitable donations, fueling misunderstanding about what motivates some corporations to donate to different causes. This misconception not only influences the design and drafting of tax systems but also generates suspicion towards corporate charitable actions.

This book offers a contemporary perspective of the essential features and functions of corporate charitable donations. It suggests shifting perspective and viewing donations as mutually beneficial transactions, with benefits arising for both donor and recipient. Building on this perspective, while also paying consideration to various constitutional and international law constraints, it analyzes how to enhance the tax technical treatment of corporate charitable donations and perfect tax policy choices behind the tax system. This book provides breakthrough research in legal and policy analysis, disrupting the status quo, which until now has largely remained grounded in the view that any measures associated with donations are exceptional, qualifying as incentives or benefits that do not really form part of the structural features of a sound tax regime.

This book is applicable to a wide range of readers, including academics, tax professionals, tax policymakers, politicians, non-profit organizations, and anyone interested in the taxation of charitable donations and the charitable sector