Observing systemic values in a tax avoidance environment: Using systems theory to examine the Ireland–Apple tax relationship

Abstract

Tax has been the site of many battles between ethical behaviour and formal compliance with tax law, particularly in an international context. This paper accepts the functional differentiation of society and explores the amorality of systems. The environmental noise about unfair tax competition by states and tax avoidance by multinational enterprises is extensive. The autopoietic legal system cannot be relied upon to deliver a concurring view, instead producing its self-referential and sometimes contradictory communications. The empirical setting considers Ireland and Apple and the legal system's verdict on the legality of their tax relationship. This legal verdict changes as the case progresses from European Commission to one court after another, a contingent and uncertain outcome that may be prompted by systemic irritation but which is not co-ordinated with moral commentary on Ireland or Apple. The absence of coordination by the legal system with environmental commentary on fairness means that, as the legal verdict changes from court to superior court, moral commentary is not a reliable predictor of legal outcome.