The article discusses how aggressive tax strategies can affect corporate governance and how certain measures can limit these strategies. It defines effective tax planning as minimizing explicit and implicit taxes and non-tax costs to address agency problems between shareholders and tax managers. The study identifies key policy issues related to aggressive tax strategies, such as why managers pursue them, their impact on shareholder value, and how tax savings can be measured. The conclusion is that counterbalancing policies, including corporate tax governance tools like risk management and disclosure rules, are needed to address aggressive managerial tax behavior.