assignment attachedMT480M4 Assess Investment Options Assessment Apply ethical reasoning to ethical...

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assignment attachedMT480M4 Assess Investment Options Assessment Apply ethical reasoning to ethical issues within the field of study. As legal considerations in the financial world are often changing, the managers need to be aware of current as well as pending legislation to stay up to date with compliance issues. In addition, consumers and executive boards are scrutinizing ethical considerations more rigorously. In this Assessment you will review legislation as well as examine ethical considerations to apply them to a scenario. Prior to the passing of the Tax Cuts and Jobs Act (2017) some of America’s largest corporations were able to apply questionable, yet legal, schemes to book profits in offshore accounts to avoid (not evade) higher levels of tax expense. These tax savings were substantial; it is estimated multinational corporations had been able to avoid an estimated $90 billion in federal income taxes each year. Scenario: The Board of Directors, shareholders, and stakeholders are just now learning that the corporation employed offshore banking transactions to minimize tax burdens.  Checklist: As the Chief Financial Officer (CFO) address the following items: · Explain to what extent the corporation’s shareholders might feel the corporation breached any measures of an entity of the highest ethical standards. · Explain to what extent the corporation’s Board of Directors might ever feel that you as CFO breached any measures of an entity of the highest ethical standards. · Use at least two of the ethical viewpoints as presented in “ethical approaches” to provide the ethical reasoning you would use to address your company’s offshore profits issue (also specify the approaches you use). · Submit a 2–3-page paper with an additional title page in APA format. Reference  Tax Cuts and Jobs Act. 115 Cong., P.L. 115-97 (2017). Retrieved from https://www.congress.gov/bill/115th-congress/house-bill/1 Submission Requirements · Address all the checklist items. · The main points of the response should be developed and explained clearly with appropriate financial and accounting terminology. · Support all arguments (no errors in logic) in responding to checklist items.  · Your content should follow proper APA citation style. APA formatting dictates that your paper includes a cover sheet, the paper is double spaced, in Times New Roman 12-point font, with correct citations, and uses Standard English with no spelling or punctuation errors. · Ensure all items on the grading rubric are met GRADING RUBRIC

Tanmoy · Accepted Answer

MT480M4: Assess Investment Options
As a Chief Financial Officer the below are the issues which are explained in details:
1. The corporation here has breached the ethical standard that is the virtue ethics approaches. Virtue ethics theory is based on Nicomachean Ethics by Aristotle. Virtue ethics theory is based on the concept of focusing on the character of the human being. The virtue theory states that a person needs to develop the virtues in order to become a moral person. Once he is able to inculcate the moralities within himself, he will be able to flourish and progress in his life. Here, the shareholders of the company invest their money based on the virtues which results in moralities of the companies over a period of time. Shareholders are paid dividend by the company for investments in shares. Now, as per this case, it is discovered that the company avoided tax by booking profits from offshore banking transactions to minimize the burden of tax on the company. In this regard, the shareholders will think to withdraw their funds by selling his shares. This will reduce the share price of the company. Hence, the company will be impacted for a period of time until it gains the confidences and trusts of the shareholders and attracts them to invest in the shares of the company. But, here lies a trick. Due to directing the investment in offshore countries the company was able to avoid heavy tax burden in the country in which it operates by deflating its profits and was able to gain profits from its subsidiary in offshore country which charges no tax or provides tax rebates to foreign companies operating in their country like Bermuda where there is no corporate tax policies. It is a way to avoid tax legally but it hampers the virtue ethics of the company. It requires huge cost to setup an offshore facility in order to avoid taxes in a high tax charging country like United States of America. Also,

MT480M4 Assess Investment Options Assessment Apply ethical reasoning to ethical issues within the field of study. As legal considerations in the financial world are often changing, the managers need...

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