1;Preface;6 2;Table of Contents;7 3;List of Authors;10 4;Part 1: The Link between Taxation and Corporate Governance;15 4.1;The Link between Taxation and Corporate Governance;16 4.2;Good Corporate Governance: The Tax Dimension;22 4.2.1;1. Putting Tax on the Corporate Board's Agenda;23 4.2.2;2. Ensuring that Tax Rules Do Not Encourage Behavior that is Contrary to the Interest of the Company and/or its Shareholders;24 4.2.3;3. Conclusion;25 4.3;Tax and Corporate Governance: An Economic Approach;26 4.4;Tax and Corporate Governance: An Economic Approach;26 4.4.1;1. Introduction;26 4.4.2;2. How Taxation and Corporate Governance Interact;27 4.4.3;3. Empirical Evidence;30 4.4.4;4. Mechanisms to Address the Agency Problem;34 4.4.5;5. Conclusion;42 4.5;Tax and Corporate Governance: A Legal Approach;44 4.5.1;1. Economic and Legal Perspectives;44 4.5.2;2. The Taxpayer that Doesn't Exist;45 4.5.3;3. Who Pays the Corporation's Taxes?;50 4.5.4;4. Allocating (Corporate) Income Tax;56 4.5.5;5. Profit-oriented Activities and the Corporate Tax;59 4.5.6;6. Income Measurement in Tax and Financial Accounting;70 4.5.7;7. Tax - An Ally to Corporate Governance?;71 4.5.8;8. Conclusion;74 4.6;Report on the Discussion;75 4.6.1;1. Introductory Presentations by Dave Hartnett and Jeffrey P. Owens ( Chair: Jeffrey P. Owens);75 4.6.2;2. Presentations by Mihir A. Desai and Wolfgang Schön ( Chair: Jeffrey P. Owens);77 5;Part 2: The Influence of Tax on Corporate Behavior;80 5.1;Financial and Tax Accounting: Transparency and " Truth";81 5.1.1;1. Introduction: Key Issues;81 5.1.2;2. Conformity of Financial and Commercial Accounts: In Search of " True Profit";84 5.1.3;3. Trends and Developments: National Jurisdictions, the EU and IFRS;88 5.1.4;4. The U. K. - Problems with Partial Conformity;93 5.1.5;5. Conclusion and Issues for the Future;99 5.2;Taxation, Accounting and Transparency: The Interaction of Financial and Tax Accounting;103 5.2.1;1. Introduction;103 5.2.2;2. Taxation and Accounting - Two Different Worlds ?;103 5.2.3;3. Transparency of the International Accounts and Influence of Transparency on Tax Planning;106 5.2.4;4. Framework for Tax Planning;108 5.3;Taxation, Accounting and Transparency: The Missing Trinity of Corporate Life;111 5.3.1;1. Introduction;111 5.3.2;2. The Shifting Corporate Governance Paradigm;111 5.3.3;3. The Shifting Accounting Paradigm;112 5.3.4;4. The Link between Prudence, Capital Maintenance and Taxation;114 5.3.5;5. Risks and Problems Resulting from Book-Tax Conformity;116 5.3.6;6. Potential Benefits of Book-Tax Conformity;118 5.3.7;7. The Road Ahead: IFRS, Taxation and SMEs;119 5.4;Tax and the Separation of Ownership and Control;121 5.4.1;1. Introduction;121 5.4.2;2. The Evolution of Ownership and Control in the U.K.;122 5.4.3;3. Pre-Conditions for a Separation of Ownership and Control;125 5.4.4;4. Tax as a Catalyst for Exit by Blockholders;127 5.4.5;5. Taxation and Demand for Shares;144 5.4.6;6. Why Did New Investors Fail to Exercise Control?;155 5.4.7;7. Tax and the Rise of the Widely Held Company in the U. S.;160 5.4.8;8. Conclusion;167 5.5;Tax and the Separation of Ownership and Control - Comment on the paper by Steven Bank and Brian R. Cheffins;172 5.6;Tax and the Separation of Ownership and Control - Comment on the paper by Steven Bank and Brian R. Cheffins;180 5.6.1;1. The Evolution of Ownership and Control in Germany;180 5.6.2;2. Taxation and Demand for Shares;184 5.6.3;3. Conclusion;184 5.7;Report on the Discussion;186 5.7.1;1. Presentations by Judith Freedman, Martina Baumgärtel and Christian Nowotny ( Chair: Hugh Ault);186 5.7.2;2. Presentation by Steven Bank and Brian R. Cheffins and Comments by Krister Andersson and Norbert Herzig ( Chair: Hugh Ault);187 6;Part 3: The Influence of Corporate Governance on Tax Strategy and Compliance;189 6.1;Corporate Social Responsibility and Strategic Tax Behavior;190 6.1.1;1. Introduction;190 6.1.2;2. The Three Views of the Corporation: A Historical Perspective8;193 6.1.3;3. Implicat