King IV Tax Governance
Is your board ready, able and willing to govern tax?
In recent months, there has been immense media and public attention on whether multinational companies (MNCs) are paying their fair share of taxes in the countries where they generate their profits. Reputable media outlets have splashed the tax affairs of many MNCs all over the media – highlighting the fact that these highly profitable organisations seem to pay very little or, at times, no corporate taxes in the jurisdictions in which they operate, by using legal but aggressive tax planning arrangements.
These developments have therefore placed the issue of tax corporate governance firmly in the spotlight and specifically the role which the board must play in guarding against aggressive tax planning strategies, and in upholding ethical business practices and good corporate citizenship.
In this article we focus on the King IV proposals dealing with the governance of tax including:
• What is King IV asking and is it a “fair” ask?
• International developments in tax corporate governance
• International developments in tax technical reforms
• Questions for directors to ask