Tax plays a vital role in sustainability strategies, as investors, standard-setters, and now regulators seek more tax governance and transparency disclosures. Building trust in this evolving environment demands not only data that informs, but a story that inspires.
A range of stakeholders are pressing tax teams to strengthen governance and increase transparency as part of a broader push for adherence to sustainability reporting requirements.
Public country-by-country tax reporting requirements will start imminently in EU with other jurisdictions including Australia looking to mandate more extensive regimes. In the US, Dodd-Frank is an SEC rule mandating tax disclosures for extractive companies. FASB and SEC are also looking at tax disclosures and country-by-country analyses.
Potential shareholders and sustainability rating agencies are looking at tax governance and transparency as they assess an organization’s tax risk profile and sustainability credentials. Current shareholders are driving adoption of GRI207 and more and more are considering tax transparency as a board-level issue.
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