UNCITRAL Model Law Development of Arbitration Framework for EPC Disclosure of Travaux Preparatoires using Political Expediency of Tax Planning

Abstract

Corporate Governance is a conceptual framework of business designs intended to illustrate the various activities of a company towards fulfilling its profit goals as private stakeholder and contributing to public interests for social obligation of sustainable development. Disclosure of corporate social responsibility is the central mechanism of corporate governance. Based on stakeholder theory, corporate governance strongly influences corporate social responsibility disclosure to enhance the relationship of stakeholders and its business community. Tax aggressiveness is utilized by board director and its members to lessen tax contribution which is contrary to the government sector goals of maximizing tax impositions for public welfare and safety. Unlawful behavior on tax aggressiveness is known as tax evasion while tax avoidance is not a violation and serves as a loophole to the taxation system. UNCITRAL model law is a legal arbitration concept of making “commercial” expand to other comparable jurisdiction of international trade. The European Patent Commission is the legal authority that delineates medical policies from patented products. Travaux preparatoires is a design practice within legal context of restricted jurisdiction for commercial exercise of strict liability. This paper aims to develop arbitration framework based on stakeholder theory of corporate governance to explain the correlation of tax planning with patented products and medical processes involving therapeutic, surgical, and veterinary policies. Therefore, tax evasion is not apparent criminal behavior and tax planning on medical policies and patented drugs must have a separate strategic means of increasing monetary success for tax avoidance to be clearly managed by the company.