On the Road Towards a Corporate Tax Index
Developed by CSR Europe in collaboration with Fair Tax Foundation and leading multinational companies, the new tool is set to offer practical support to businesses looking into assessing the level of transparency and responsibility of their tax strategy.
The Index, which also aligns with key EU tax disclosure requirements like the Country-by-Country Reporting Directive, will be launched on 19th April at a high-level event.
On 19th April 2024, CSR Europe and Fair Tax Foundation will release the first-ever corporate Tax Index, aimed at measuring the level of tax transparency and responsibility within businesses. The tool, in line with the EU tax disclosure requirements of the Country-By-Country Reporting Directive (CbCRD) and other initiatives, provides companies with an opportunity to:
Better understand internal processes revolving around taxation such as governance, policies, and controls.
Enhance their external communication practices, demonstrating their commitment to responsible taxation.
Engage with external stakeholders, such as investors, who will have an overview of the company’s responsible tax practices.
The creation of this Index marks the culmination of a year-long collaborative effort by frontrunning corporations, including Enel, Fortum, Grundfos, Orsted, and Vattenfall within the Tax Responsibility and Transparency platform. Launched by CSR Europe in 2023, this platform seeks to promote responsible tax practices, thereby supporting companies in upholding ethical standards, fostering trust, and contributing to societal well-being.
In today's globalised economy, where multinational corporations operate across diverse jurisdictions, the imperative for tax transparency and responsible tax behaviour is more critical than ever. As stakeholders increasingly demand accountability and transparency, companies that prioritise responsible tax practices will not only safeguard their reputations but also drive sustainable value creation in the long term.
At its core, tax transparency cultivates a culture of accountability. Through voluntary disclosures, standardised reporting, stakeholder engagement, and tax risk management, corporations can demonstrate their commitment to ethical standards and civic duties. Furthermore, the benefits of responsible taxation extend beyond regulatory compliance and public perception. They include strategic advantages, such as enhanced reputation, reduced risk of reputational damage, the ability to attract socially responsible investors and consumers who prioritise responsible conduct.
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