Managers of multinational companies often favour an aggressive tax avoidance strategy that pushes the legal limits onto the advantage of shareholders and the disadvantage of the spirit of democratically legitimized tax laws. The public and media debate whether such aggressive behaviour is immoral. Aggressive tax avoidance is a subset of the aggressive legal interpretations potentially observable in all fields which places little weight on the will of a democratically legitimized legislation. A thorough ethical analysis based on the deontological approach of (...) Kant demonstrates that aggressive tax avoidance as a special case of operating on the edge of legal boundaries is potentially immoral. Applying the Kantian “contradiction of conception or will” test shows that this maxim might not be conceived or willed as a general law of nature. If all natural or legal persons aggressively interpret laws on all subjects and in every imaginable situation, then central principles of the system of law we all rely upon would be severely compromised. Therefore, aggressive tax avoidance by managers of multinational companies may violate the managers’ moral duty to obey not only the letter but also the intention or spirit of the law. The validity of the argumentation depends critically on the formulation and interpretation of the respective maxims and on assumptions about the legal system. Preserving central elements of Kantian philosophy, the article demonstrates the complexity of a philosophical argumentation which tries to justify the moral intuitions that underpin the common negative evaluation of aggressive legal strategies in business. (shrink)

This article offers a definition of the term "pragmatic", as it is used in Kant's Critique of Pure Reason. The definition offered does not make any reference to the affinities between Kant's pragmatism and the philosophies of the American or other pragmatists but draws its definiens entirely from the Kantian conceptual framework. It states that the term "pragmatic" denotes imperatives, laws and beliefs of a specific type: an imperative is pragmatic if and only if it is concerned with the choice (...) of means to individual or universal happiness; a law is pragmatic if and only if our willingness to presuppose it results from our obedience to a pragmatic imperative; and a belief is pragmatic if and only if it relates to the objective validity of pragmatic laws. This article also discusses two rival definitions of the term "pragmatic" (as used by Kant) that have been brought forward by Sidney Axinn and Nicholas Rescher. (shrink)