Internet giant Zoidle, a U.S. company, generated sales of £2.5billion in the United Kingdom in 2013 (approximately $4 billion inU.S. dollars). Its net profits before taxes on these sales were£200 million, and it paid £6 million in corporate tax, resulting ina tax rate of 3 percent. The corporate tax rate in the UnitedKingdom is between 20 percent and 24 percent.

The CEO of Zoidle held a press conference stating that he wasproud of his company for taking advantage of tax loopholes and forsheltering profits in other nations to avoid paying taxes. Hecalled this practice “capitalism at its finest.” He further statedthat it would be unethical for Zoidle not to take advantage ofloopholes and that it would be borderline illegal to tellshareholders that the company paid more taxes than it had to paybecause it felt that it should. Zoidle receives significantbenefits for doing business in the United Kingdom, includingtremendous sales tax exemptions and some property tax breaks. TheUnited Kingdom relies on the corporate income tax to provideservices to the poor and to help run the agency that regulatescorporations. Is it ethical for Zoidle to avoid paying taxes? Whyor why not?

Describe how you would advise the company to act in thefollowing situation. Please be sure to describe your ethicalreasoning process.