An integrated approach to tax transparency
The information that businesses share about their taxes is being examined by a growing range of interested parties. Some companies have responded by explaining their position more fully in their financial reporting or other communications. At the same time, regulators are looking to require at least some companies to report more tax information. What should you be doing now to be ready and able to describe your organisation’s tax position?
Firstly, you need to understand who the stakeholders are – the financial community, employees, customers, suppliers, broader society and of course tax and regulatory authorities will all represent potential interested (and potentially challenging) parties. Secondly, each will have different demands and expectations around the nature and amount of tax information they require. Each stakeholder will need a different level of clarity over your tax position, and some will need an overview of all the communications you and your business make about tax.