KPMG’s “ESG tax transparency: The businesses’ journey” provides helpful guidance to companies that are aiming to expand their tax disclosure beyond what is legally required to meet increasing expectations and calls for enhanced tax transparency. The piece offers a logical, big picture approach to increasing public disclosure with reference to the widely consulted Global Reporting Initiative’s tax standard (see our prior report on that here); common and potential types of qualitative and quantitative disclosures; and practical considerations. Among other things, the article makes clear that increasing transparency is a potentially significant undertaking process that requires: (i) developing a tax policy or strategy and ensuring the strategy is integrated in the company’s overall strategic plan, (ii) good governance and controls, and (iii) engagement with stakeholders, including tax authorities and policy/advocacy activities.
See our report: “ESG Implications: M&A, Tax, Disclosure Risks”; the PRI’s “Global Trends in Corporate Tax Disclosure”; and KPMG’s companion article: “ESG tax transparency: The global journey.”
This post first appeared in the weekly Society Alert!