The mutually reinforcing link between tax haven use and global inequality and injustice

Abstract

Purpose – The purpose of this paper is to build on recent work by Love (2024) on how profit-shifting by multinational enterprises (MNEs) and tax competition leads to inequality and global injustice. Design/methodology/approach – This paper outlines how different disciplines have analyzed the use of tax haven by MNEs. The authors discuss how these insights can lead to policy recommendations for global inequality and injustice from various complementary perspectives. Findings – The authors identify three interesting issues: (1) how other disciplines have examined tax havens and inequality/injustice and what insights International Business (IB) could draw from these perspectives; (2) the potential policy roles of the OECD versus the UN in addressing the challenges posed by profit-shifting and tax competition; and (3) the benefits of integrating a philosophical approach to global justice into the IB literature, providing a more normative framework for understanding the implications of MNE activities. Originality/value – This paper contributes to the increasing importance and ongoing debate regarding the MNEs influence on global inequality and injustice. It demonstrates how philosophical and ethical perspectives can complement and enrich existing IB perspectives in addressing the grand challenge of inequality across countries and the role that MNEs play via their tax haven strategies. The authors further suggest that crossdisciplinary approaches and methods are necessary to demystify the secrecy of tax havens and offer policy recommendations on how to alleviate global inequality and injustice.