Moral Law vs. Tax Law, Managerial Accounting

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1. Do you think that the tax minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corpo- rate executives? Why or why not? What would you do if you were Debbie?
2. Apparently, the Tax Department of Paterson Company has been strongly involved in developing the tax-minimization scheme. Assume that the accountants respon- sible for the decision are CMAs and members of the IMA, subject to the IMA standards of ethical conduct. Review the IMA standards for ethical conduct in







Chapter 1. Are any of these standards being violated by the accountants in Pater- son’s Tax Department? If so, identify them. What should these tax accountants do if requested to develop a questionable tax-minimization scheme?


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