How can Companies Improve their Tax Behaviour?
From the European Commission’s new “Plan to fight against Tax evasion” to the “Business Taxation in the 21st Century”, companies are increasingly requested to be increasingly transparent when it comes to their tax strategies and policies. CSR Europe’s Blueprint and tailored service on Responsible and Transparent Tax Behaviour will support companies in their journey for a coherent tax strategy in line with the overall sustainability strategy.
In times of crisis, the way companies manage their tax strategies and policies becomes even more relevant. For this reason, in our latest webinar “GRI’s Tax Standard”, CSR Europe, together with the Global Reporting Initiative (GRI) and Accountancy Europe discussed how companies can effectively report on their tax policies and show their commitment to the achievement of the United Nations’ 2030 Agenda for Sustainable Development.
Several tools are available on how to better disclose information on tax policies:
1. CSR Europe’s Blueprint and tailored tax service allow companies to engage:
Internal stakeholders to build the business case for corporate tax responsibility and
External stakeholders to engage them in the development and refinement of the company’s reporting processes.
As a result, companies will be able to establish a tax strategy coherent to their overall sustainability strategy.
2. The new GRI Standards on Tax guides companies in their reporting process on tax, including a comparison between the GRI approach and management of tax disclosure and the Organisation for Economic Co-operation and Development (OECD)/G20 Framework on Base Erosion and Profit Shifting (BEPS).
3. In the OECD/G20 Inclusive Framework on BEPS, over 135 countries are implementing 15 Actions to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.
As companies are increasingly requested to move towards a “Total Impact Disclosure” , encompassing financial, Environmental, Social, and Governance (ESG) as well as tax elements, it is all the more important for companies to stay up-to-date with and adapt to the latest developments.
In the next months, CSR Europe will update its members on the European Commission’s new “Plan to fight against Tax evasion” and “Business Taxation in the 21st Century”.
Our commitment is to support companies in making responsible and transparent tax behaviour the new normal. For this reason, within our Community of Practice on “Total Impact Disclosure”, CSR and Tax Managers of our member companies will have the opportunity to discover and apply best practices that will help them embedding sustainability in tax decisions and practices.